President Donald Trump said on Friday that he suspended Commercial talks with Canada In the course of the plans to continue his tax on technology companies, which he described as “direct and obvious attack on our country”.
Trump said in a contribution in his social media network that Canada had just informed the USA that it was followed by his plan to impose the tax of digital services that applies to Canadian and foreign companies that deal with online users in Canada. The tax should come into force on Monday.
“Based on this outrageous tax, we hereby end all discussions about the trade with Canada. We will inform Canada about the tariff that you will pay for the business with the United States within the next seven days,” said Trump in his post.
Trump’s announcement was the latest alternative in The trade war He has been launched for a second term in January since taking office. The progress with Canada was a roller coaster ride, starting with the US president in the northern neighbor A US state.
The Canadian Prime Minister Mark Carney said on Friday that his country “would continue these complex negotiations in the best interest of the Canadians. It is a negotiation.”
Trump later said he would expect Canada to remove the tax.
“We have such power over Canada economically. We prefer not to use it,” said Trump in the Oval Office. “It won’t work for Canada. They were stupid to do it.”
When asked whether Canada could do something to restart talks, he suggested that Canada could remove the tax, and predicted that she said: “I don’t care.”
Carney Visited Trump In May in the White House, where he was polite but firm. Trump traveled to Canada last week for The G7 summit In Alberta, where Carney said that Canada and the United States had set a 30-day period for trade talks.
The digital service tax becomes a company including the hit AmazonPresent GooglePresent MetaUber and Airbnb With a delivery of 3% income by Canadian users. It will be applied retrospectively and companies with a US dollar in US dollars, which is due at the end of the month, will be applied with 2 billion US dollars.
“We appreciate the administration’s decisive response to the discriminatory tax of Canada on US -Digital exports,” said Matt Schruers, Managing Director of Computer & Communications Industry Association.
Canada and the USA discussed the loosening A number of steep tariffs Trump imposed On goods from America’s neighbors.
The Republican President previously reported reporters that the United States would soon have prepared to send letters to different countries and to inform them about the new tariff rate that its administration would impose them.
Trump has imposed 50% tariffs Steel and aluminum as well as 25% tariffs on cars. It also levies a tax of 10% for imports from most countries, although he could increase interest rates on July 9 after the 90-day negotiating period he had defined.
Canada and Mexico are exposed to up to 25% separate tariffs, which Trump used under the patronage of the fentanyl smuggling, although some products are still protected as part of the US Mexico-Canada Agreement of 2020, which was signed during Trump’s first term.
After a private meeting with the Republican senators on Friday, the finance minister Scott Bessent spoke to reporters and refused to comment on the news that Trump had ended the trade talks with Canada.
“I was in the meeting,” said Bessent before I went over to the next question.
About 60% of the US raw oil imports come from Canada and 85% of US electricity imports.
Canada is also the largest foreign supplier of steel, aluminum and uranium in the USA and has 34 critical minerals and metals that the Pentagon wants to apply for.
About 80% of Canadian exports go to the USA
Daniel Beland, professor of political science at MCGill University in Montreal, said that it was a domestic tax problem, but it was a while a voltage source between Canada and the United States for a while because it is aimed at the US -Tech giant.
“The law on digital services was signed in the law a year ago, so that the advent of this new tax has long been known,” said Beland. “But President Trump waited shortly before his implementation to create a drama in connection with ongoing and very uncertain trade negotiations between the two countries.”
