Fri, 27 Jun 2025

Fri, 27 Jun 2025 Trump says he is cutting off trade talks with Canada

Canada had been hoping to secure a trade deal with the US next month to avoid steep tariffs.
US President Donald Trump has abruptly ended trade talks with Canada, citing a new 3% digital services tax imposed by Ottawa on tech companies such as Amazon and Google. The move comes just days before Canadian companies are set to pay their first taxes under this policy. Trump announced the decision via social media, stating that he would announce new tariffs on goods crossing the border within seven days. This development raises doubts about a future trade deal between the two nations, which had been working towards an agreement by mid-July. Canada's Prime Minister Mark Carney said talks would continue in the best interest of Canadians, despite Trump's statement. Business groups estimate that American companies will face losses of over $2 billion per year due to the digital services tax. The issue has been a sticking point in US-Canada trade relations since last year, with Canadian officials hoping to address it as part of the ongoing negotiations.
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