27.06.2025 21:07

President Donald Trump abruptly halted all US trade negotiations with Canada. His decision, announced via a post on Truth Social, was a direct response to Canada's newly implemented digital services tax targeting American technology companies. He characterized the tax as an unfair and unacceptable attack on US interests, justifying the immediate cessation of talks.

Trump's declaration, delivered with characteristic bluntness, stated that Canada would receive formal notification within seven days regarding impending tariffs. These tariffs, a retaliatory measure, will be imposed should Canada continue to maintain its digital services tax. This unilateral action underscores Trump's long-standing opposition to such taxes, previously referred to by him as significant impediments to fair trade.

The Canadian digital services tax, set to take effect on June 30th retroactively to 2022, levies taxes on online services provided by large corporations, regardless of profitability. This structure disproportionately affects major US tech giants such as Meta, Apple, Google, Amazon, and Microsoft, a fact highlighted in a Congressional Research Service report. Unlike taxes on physical goods, these levies specifically target revenue generated from digital platforms.

This sudden termination of months-long negotiations has ignited considerable debate. Critics argue that Trump's move poses a serious risk to global trade stability, potentially impacting sectors like automotive manufacturing, agriculture, and energy. The anticipated retaliatory tariffs will likely inflict disproportionate harm on smaller businesses and complex supply chains, causing significant economic ripple effects. While markets currently remain relatively calm, the uncertainty surrounding this escalating trade dispute is undeniably palpable. The potential for further negative consequences remains a significant concern.