'Copying The EU': Trump Calls Off Trade Negotiations With Canada, Threatens New Tariffs

Last Updated:June 28, 2025, 07:19 IST

President Donald Trump ended trade negotiations with Canada, citing its digital services tax, and stated Ottawa will learn their tariff rate within a week.

US President Donald Trump. (AFP file photo)

In a significant blow to Canada, United States President Donald Trump announced termination of trade negotiations with Ottawa with immediate effect. Donald Trump suspended the trade talks, citing Canada’s Digital Services Tax and adding that Ottawa will learn of their tariff rate within a week.

Calling Canada, “a very difficult Country to TRADE with," US President Trump mentioned that it has charged American farmers “as much as 400% Tariffs, for years, on Dairy Products."

Criticising Canada’s Digital Services Tax, Trump said it will affect American Technology firms.

The 79-year-old accused Canada of “copying the European Union, which has done the same thing, and is currently under discussion with us, also."

Trump said implementation of the Canadian tax policy on American products “is a direct and blatant attack on our Country."

Taking to his social media platform Truth Social, the US President wrote, “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, which is a direct and blatant attack on our Country. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also.(sic)"

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period. Thank you for your attention to this matter!(sic)"

What Is Digital Services Tax?

Digital Services Tax (DST), effective June 28, 2024, imposes a 3% levy on revenue from certain digital services provided to tech users in Canada. Enacted under the Digital Services Tax Act, it targets giant firms with global revenue over €750 million and Canadian digital services revenue exceeding C$20 million annually. The tax applies retroactively to revenue earned since January 1, 2022, with the first payment due by June 30, 2025. It covers four categories: online marketplace services, online ads, social media services, and the sale or licensing of Canadian user data.

Manisha Roy

Manisha Roy is a Senior Sub-Editor at News18.com's general desk. She comes with an experience of over 5 years in media industry. She covers politics and other hard news. She can be contacted at Manisha.Roy@nw18...Read More

Manisha Roy is a Senior Sub-Editor at News18.com's general desk. She comes with an experience of over 5 years in media industry. She covers politics and other hard news. She can be contacted at Manisha.Roy@nw18...

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Washington D.C., United States of America (USA)

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News world 'Copying The EU': Trump Calls Off Trade Negotiations With Canada, Threatens New Tariffs