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yesterday

Trump Suspends Trade Talks With Canada Over Retroactive Digital Services Tax

He will set retaliatory tariffs within seven days after Canada’s tech levy, prompting Ottawa to vow continued complex negotiations.

Treasury Secretary Scott Bessent talks to reporters about his lunch meeting with Republican senators and the schedule for getting the Republican megabill to President Donald Trump's desk by July 4, at the Capitol in Washington, Tuesday, June 24, 2025. (AP Photo/J. Scott Applewhite)
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Overview

  • President Trump terminated all negotiations immediately in response to Canada’s 3% Digital Services Tax on revenues from Canadian users of major US tech firms.
  • He announced the United States will notify Canada of new tariff rates within seven days as part of a potential Section 301 investigation and broader reciprocal measures.
  • Because the levy is retroactive to 2022, American companies could face up to $2 billion in additional charges by the end of the month.
  • Canada is the United States’ second-largest trading partner, exchanging about $762 billion in goods annually, underscoring the economic risks of the dispute.
  • Canadian Prime Minister Mark Carney affirmed that Ottawa will continue ‘complex negotiations’ in the best interests of its workers and businesses despite the freeze.