Overview

• President Trump declared on Truth Social that all trade negotiations with Canada are terminated immediately in response to Ottawa’s digital services tax.
• He pledged to announce new U.S. tariff rates within seven days to penalize Canada’s 3% levy on revenue from Canadian users of U.S. tech platforms.
• The tax, effective June 30 and retroactive three years, is expected to impose close to $2 billion in costs on American companies.
• Prime Minister Mark Carney affirmed that negotiations will continue in Canadians’ best interests despite Washington’s suspension of talks.
• The Business Council of Canada and the Canadian Chamber of Commerce have urged Ottawa to suspend the tax to avoid retaliatory tariffs.