US ends trade talks with Canada

President Donald Trump abruptly ended trade talks with Canada on Friday, citing its “egregious” digital-services tax on US tech firms like Google, Meta, and Amazon. 

He announced on Truth Social and said, “We are hereby terminating ALL discussions on Trade with Canada, effective immediately.”

The tax applies to revenue earned from Canadian users and includes retroactive payments from 2022. US companies face an initial payment of up to $3 billion, with annual costs exceeding $1 billion.

Newly elected Canadian Prime Minister Mark Carney, who vowed to defend national interests, responded by saying Canada will continue negotiations. The two leaders recently clashed over the tax and dairy tariffs at the G-7 summit. 

The US may now launch a Section 301 trade investigation into Canada’s practices. 

Canada relies heavily on US trade, with over 75% of its exports going south. 

Industry leaders on both sides warn the rift could disrupt cross-border commerce and harm economic ties between the allies.