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Donald Trump said that the US ‘terminates’ commercial interviews with Canada in retribution against a new tax on digital services on technology companies, which after months of Détenente housed a Bitter Noord -American Trade War.
“Canada, a very difficult country to deal with … has just announced that they have a digital service tax on our American technology companies, which is a direct and blatant attack on our country,” the US President posted on his truth social platform on Friday.
“Based on this serious load, we will terminate all discussions about trade with Canada, immediately in force,” Trump added.
The president said he would determine a new rate rate for the import of Canadian “within the next seven -day period”.
Friday’s announcement the two nations dives back into a trade war, which brought an abrupt end to a period of more cordial relationships that followed the Mark Carney election as the Canadian Prime Minister in March.
Carney-Die to Premiership was propelled to an increase in anti-U-sentiment tried to reset the relationships with Washington that were tense among his predecessor Justin Trudeau. Early meetings between the couple turned out to be friendly, but Trump’s eruption threatens to undo the progress.
“The Canadian government will continue to undertake these complex negotiations with the United States in the interest of Canadian employees and companies,” said the Prime Minister’s office.
The Canadian dollar fell on Trump’s explanation when traders responded to the fresh escalation of the trade conflict, making it 0.7 percent against the US dollar on the day. The S&P 500 also fell from its highlights of the day, but the Blue-Chip Index continued to rise around 0.3 percent.
Canada organized Trump on the G7 Summit earlier this month. After their conversations, Carney placed on X that the two countries “had agreed to follow negotiations on a deal within the next 30 days”.
Trump’s Broadside comes after the Canadian Finance Minister François-Philippe Champagne said this month that Ottawa “continued” with plans for a tax on digital services despite the doubts of the Trump administration.
The measure would be tech groups with a 3 percent levy on the income earned with Canadian users and has been opposed to Silicon Valley.
Foreign companies such as Meta, Netflix and Amazon, as well as local companies, must submit a tax return for the tax or receive a fine at the end of the month.
Trump also stored in the Canadian agricultural policy, a long -term separated area between the countries that go back to the president’s first term.
“They have charged our farmers up to 400% rates for dairy products for years,” he wrote on Friday in his Truth Social Post.
Canada has recently adopted legislation on measures “Supply Management” to protect its dairy industry through price setting and production quotas – a system described by Trump in 2017 as a “shame”.
The return from Trump to the office led to a tit-for-tat trade war between Washington and Ottawa after he has announced 25 percent rates for Canadian goods. These taxes were later changed to carve-outs for goods that fall under the USMCA trade agreement, but new sectoral rates for steel and aluminum have hit Canada hard.
The traditional bitterness – in addition to the threat of the president to annex Canada as the 51st US state – has activated an increase in resentment north of the border.
The Canadian industrial groups hit the tax on digital services on Friday and urged the government to cancel it to calm Trump.
“For many years we have warned that the implementation of a unilateral tax on digital services could run the risk of undermining the economic relationship of Canada with his most important trading partner, the United States,” said Goldy Hyder, President of the Business Council of Canada. “That unfortunate development has now passed.”
