Overview

• On June 27, Trump announced via Truth Social the immediate end of all trade discussions with Canada, calling its digital services tax a “scandalous” blow to American interests.
• He pledged to inform Ottawa within seven days of new duties Canada must pay to export goods to the United States.
• Canada’s tax, effective June 30, applies to firms with global revenues above CAD 1.1 billion and Canadian sales exceeding CAD 20 million, encompassing Google, Apple, Meta, Amazon and Microsoft.
• Trump has also criticized similar digital levies in the European Union and is leveraging them in broader trade negotiations with EU partners.
• While some Canadian exports remain protected under the USMCA, others already face new US tariffs and could encounter additional duties under Trump’s plan.