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US-Canada Trade Talks Collapse Over Digital Tax
Trump halts talks as Canada enforces a 3% digital tax on US tech firms, impacting exports worth $349B in 2024.
Key FactsJun 28 · Reading time: ~45 sec.
Summary created with AI assistance · Source: abc.net.au
  • President Trump abruptly stopped trade negotiations with Canada, citing its digital services tax as a direct attack on US technology companies.

  • This move disrupted a period of calm following a mid-June G7 meeting where leaders aimed to finalize a new economic deal within 30 days.

  • Canada's new 3% tax on digital revenue above $20 million, retroactive to 2022, triggered the US response to end talks immediately.

  • Canada remains committed to negotiations while the US prepares retaliatory tariffs against Canada and other countries imposing similar taxes.
  • Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.
    Donald Trump, in a post on his Truth Social media platform, announcing the termination of trade talks with Canada.
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