Particle.news

Download on the App Store

Trump Suspends U.S.-Canada Trade Talks After Ottawa’s Digital Services Tax

Republicans have removed Section 899 from the president’s budget bill, setting the stage for a USTR probe that could impose $2 billion in U.S. tariffs on Canadian goods.

Overview

  • President Trump’s directive suspends all trade talks with Canada, halting efforts to resolve U.S. tariffs on steel, aluminum and autos.
  • Canada’s new 3% digital services tax on tech firms takes effect June 30 and will collect up to US$2 billion in retroactive levies from U.S. companies.
  • Businesses from nations that miss Trump’s July 9 deadline for reciprocal tariff agreements face automatic hikes on U.S. imports.
  • USTR Jamieson Greer is expected to open a Section 301 investigation into Canada’s tax, authorizing proportional U.S. retaliation estimated at about US$2 billion.
  • In response to U.S. tariff threats, Ottawa has capped U.S. steel imports and slapped a 50% surcharge on shipments that exceed national quotas.