US-Canada Trade Talks Halted Over Digital Services Tax Clash

President Donald Trump has suspended trade talks with Canada after the country announced plans to maintain its tax on technology firms. The tax, affecting companies like Amazon and Google, imposes a levy on Canadian user-generated revenue. Passions run high as new tariffs loom over US-Canada relations.


Devdiscourse News Desk | Washington DC | Updated: 27-06-2025 23:52 IST | Created: 27-06-2025 23:52 IST
US-Canada Trade Talks Halted Over Digital Services Tax Clash
Donald Trump
  • Country:
  • United States

In a surprising development, President Donald Trump announced an immediate suspension of trade discussions with Canada, citing the country's decision to uphold its digital services tax on technology firms.

Trump described the tax as a 'direct and blatant attack on our country' in a statement shared on his social media platform, escalating tensions between the two nations.

The Canadian tax, which affects major companies like Amazon, Google, and Meta, is set to apply a 3% levy retroactively, potentially costing US corporations billions. The announcement stirs uncertainty in US-Canada trade relations, with Trump indicating new tariffs could be imposed imminently.

(With inputs from agencies.)

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