Trump Announces He’s ‘Terminating’ Trade Talks with Canada – Effective Immediately
“They are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country.”
In a Friday afternoon post on Truth Social, President Trump declared he was “terminating” trade talks with Canada, which have been ongoing for several months, “effective immediately.” The reason, he said, was because Canada had placed a “Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country.” He added that we will notify Canada within the next week “the Tariff that they will be paying to do business” with the U.S.
According to CNBC, the digital services tax was enacted in 2024 and “applies retroactively to 2022.” The first payments are due on Monday.
— Katie Pavlich (@KatiePavlich) June 27, 2025
The U.S. has reportedly pressured Canada to withdraw the tax, but Ottawa has remained firm. While details of the story remain scarce, indications suggest that Trump left last week’s G7 summit with a significantly different understanding of where things stood.
The Wall Street Journal reported:
The first payments from tech companies to the Canadian government over the digital-service tax, a levy on revenue companies make from Canadian users, are due on Monday. The tax would likely cost U.S. tech companies billions of dollars. It includes retroactive taxes on sales going back to 2022, and industry groups estimate the initial payment could total up to $3 billion, with subsequent annual payments north of $1 billion.
According to CNN:
Digital services taxes are a way for countries to tax online services, in contrast to taxes on physical products. Countries with these taxes can collect revenue from large companies that operate online — even if the business is unprofitable. American firms, especially Big Tech companies such as Meta, Apple, Google, Amazon and Microsoft, are disproportionately affected by DSTs, according to a report published last year by the nonpartisan Congressional Research Service.
Canada is America’s second largest trading partner (after Mexico). According to data from the Office of the United Stated Trading Representative, total goods traded between the U.S. and Canada in 2024 was “an estimated $762.1 billion.”
The stock market averages, which had been up by more than 1% throughout the day plunged on Trump’s announcement, but have begun to rebound since.
Elizabeth writes commentary for Legal Insurrection and The Washington Examiner. She is an academy fellow at The Heritage Foundation. Please follow Elizabeth on LinkedIn or X.
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Comments
Canada has not figured out yet that they need us far more than we need them. It is time to start tightening the thumb screws.
What if the American companies just simply refused to pay the tax?
Gee just cut service to Canada. If they are going to be so stupid to indirectly elect a Eurowenie progressive as their fearless leader they can reap all the consequences for doing so.
A retroactive tax? Are these people savages?
Yes. They’ve beggared their own people so are now longing for additional revenue sources. The socialist thirst for money is bottomless.
Californians…. take note.
And New York City residents.
Subotai Bahadur
They passed a law to force the murder of their own citizens so yes, they are firmly down the communist path of eliminating the old, poor, sick, mentally deficient etc. All for the greater good of course
Which is why we shouldn’t allow Canadians to relocate to the US. They will simply bring their Marxist nonsense with them.
Vet them as carefully as we did Soviets and East Germans who wanted to immigrate.
Truly outrageous!
This retroactive tax, enacted when Mr. 10% was president, makes it impossible for the US firms to recover the tax from the Canadian customer.
The article says the EU is doing the same.
In retaliation, the USA should quit NATA and return our military to the USA and impose a real huge tax.
We can retaliate by levying a prospective wealth tax on the anticipated final estate of Canadian snow birds. The tax would be due retroactively in 1968, so that substantial interest and late penalties can be assessed.
I can tell you it’s beyond time to deport all Canada geese. The damn things have invaded our country, and our golf courses, and refuse to leave.
Gay North Dakota
Ottawa was wondering just how hard they could squeeze before Uncle Sam would say “Enough!”
Guess they just found out.
now re-institute the “Draft” but you’d better first dig up Jimmuh Carter.
trying to strong arm obamafjbclinton??
yeah makes sense
trying to do so to djt?
horses head in ya bed
Well, it was nice knowing you canada. Looks like we have to destroy your economy now. Too bad for you
And you coulda been a
contenda…state… territory.Canada has problems with the western provinces. They are already scheduling a plebiscite to find out if the citizens want to leave Canada. If they say yes and leave, they will ask to be admitted to the USA. That’s a lot of cattle, mining and oil that could move our way. Levy a huge tariff on Canada and tell the PM to pound sand. Welcome Alberta and any other province to America. Hey Canada…FAFO
I don’t think we really want or need Quebec.
Subotai Bahadur
Quebec…. Tres Mauvais!!!
Only if we go in a capture The Montreal Canadians first. Go Habs
The hockey team is spelled Canadiens–referring to the French spelling.
Uniparty Danny is probably beside himself at this news.
For such a supposedly erudite and sophisticated guy, Mark Carney had every opportunity to wrangle a trade deal beneficial to both Canada and the U.S. But, no, Mr. Smarty Pants imposes a DST that could only royally p.o. DJT and blows everything to smithereens. Nice going, hoser.
Carney is a communist. He only knows how to destroy.
Carney is a globalist elite. He is doing what Europe is doing because that’s his background. That Canadians thought it was a good idea to elect this IMF globalist banker to be it’s head is a mystery. Of course he is going to do stuff like this because he doesn’t care. He isn’t Canadian, feels nothing for the country and has all his money offshore. No matter how much damage he does to Canada it won’t affect him in the least. He will just leave again.
Did Canada really elect him, or are their elections as suspect as ours have been?
(I’m thinking stuff like the 2006 WA state gubernatorial race with 2000+ more votes in King County than registered voters among other issues and Mr. 81 million votes.)
Parliamentary system. They made him the head of Little Castro’s party. That party won enough seats to form a government either alone or with another party. Ergo he becomes Prime Minister. The only people voting for him are those in his rider (I think that’s what it’s called). First time he ran for election and first time winning as well.
Hey, Reagan walked away from the table at Reykjavik…
Canada have been using tariffs on the US for many many decades and now President Trump wants to come to an agreement about it. Canada does not want to change and ignores Trump. So President Trump is going to shut Canada trade with the US down, which is their biggest trade partner.
I was in Canada many decades ago on a business trip from the US when they came to an agreement to keep the country together by keeping Quebec in the country. Since then it seems they have moved to the left. All I see from Canada’s leaders today are fools. I see many of the provinces are looking at the central part and may decide to break off into their own country.
I would think there is a lot of coordination going on between Canada and the EU in the background but I suspect the EU will not be in a position to pick up the loss of trade with America when reality hits the Canadian economy.
Boy, if only Canada had a PM prepared to put Canada’s interests ahead of the WEF’s interests eh 🤔
So Canadian customers will end up paying far more for digital services. Both past and future costs will be added in. That plus sales loss because of tariffs will not be pleasant for Canadians.
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