Trump calls Canada a ‘difficult’ trade partner, suspends trade discussions amid tech tax tensions

US President Donald Trump announced Friday that trade negotiations with Canada are being suspended in response to a tax affecting major US technology companies. He stated that Canada would be informed of the new tariff rate within a week.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump said in a post on his Truth Social platform.

He further commented that Canada would soon learn the amount it must pay to continue business operations in the United States, describing the country as “very difficult” to engage with on trade matters.

The United States has previously raised concerns over Canada’s digital services tax, having initiated dispute settlement discussions last year.

Although the tax was enacted in 2023, the Computer & Communications Industry Association noted that U.S. digital service providers are expected to make multi-billion dollar payments in Canada by June 30.

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While Canada has been spared from some of Trump’s most sweeping duties, such as a 10 percent rate imposed in early April on nearly all trading partners, it faces a separate tariff regime.

Since returning to the White House in January, Trump has also imposed steep levies on imports of steel, aluminum and autos.

Last week, Canada said it would adjust its 25 percent counter tariffs on US steel and aluminum after Washington doubled its levies on imports of both metals to 50 percent – if a trade deal was not reached within 30 days.

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