Trump announces immediate end of trade negotiations with Canada in response to a tax on digital services by the neighboring country

U.S. President Donald Trump on Friday announced the immediate termination of all trade discussions with Canada in response to the Canadian government's decision to implement a digital services tax targeting U.S. tech companies.

The announcement, made through the Truth Social platform, escalates trade tensions between the United States and one of its major trading partners, putting at risk a key economic relationship that accounted for approximately $762 billion in trade in goods last year, according to the data from the Office of the U.S. Trade Representative.

In his statement, Trump accused Canada of perpetrating a "direct and blatant attack" against the United States by imposing the tax on digital services, comparing the move to similar policies adopted by the European Union.

“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also.”

The president added that, as a result of this "egregious Tax," the United States will terminate all trade negotiations with Canada immediately.

He further noted that Canada will be informed within the next seven days of the tariffs it will have to pay to continue doing business with the United States. "Thank you for your attention," the message concluded.

The office of Canadian Prime Minister Mark Carney has not yet issued comments on the matter.