US-Canada Trade Clash Intensifies Over Digital Tax
President Donald Trump announces suspension of trade talks with Canada over its digital services tax on technology firms. The tax impacts companies such as Amazon and Google with a 3% levy on Canadian revenue. Canada insists on maintaining the tax, and the US plans retaliatory tariffs.
- Country:
- United States
In a dramatic turn of events, President Donald Trump has announced the suspension of trade discussions with Canada, citing its forthcoming digital services tax as the main impetus. Trump described the tax as a 'direct and blatant attack' on the United States.
This digital services tax targets significant players such as Amazon, Google, Meta, Uber, and Airbnb, implementing a 3% levy on revenue from Canadian users. It is set to become effective on Monday, impacting both Canadian and foreign businesses engaging online within the country.
Canadian Prime Minister Mark Carney remains steadfast, emphasizing ongoing negotiations in Canadians' best interests. Meanwhile, the US administration has hinted at retaliatory tariffs, exacerbating the already tense climate between the neighboring countries.
(With inputs from agencies.)
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