On 27/6, Trump wrote on Truth Social, "Canada, a very difficult country to deal with, has just announced a digital services tax on our great American tech companies. This is clearly an attack on our country,".
The US president said that due to this issue, the US would "immediately terminate all trade negotiations with Canada" and would "notify Canada of the tariffs they will pay to do business with the US within the next 7 days".
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US President Donald Trump and Canadian Prime Minister Mark Carney on 16/6. Photo: Reuters |
US President Donald Trump and Canadian Prime Minister Mark Carney on 16/6. Photo: Reuters
Canada's government plans to implement a 3% digital services tax on US tech companies such as Amazon, Meta, Alphabet, and Apple starting next week. This tax, previously approved, applies to digital service providers with annual revenue from Canadian users exceeding 20 million CAD (14.5 million USD).
Speaking to reporters at the White House, Trump stated that negotiations with Canada would not resume until they "reverse this action". Following Trump's announcement, Canadian Prime Minister Mark Carney's office said, "The Canadian government will continue to engage in complex negotiations with the US in the best interests of workers and businesses,".
Canada is currently the second-largest trading partner of the US, after Mexico, and its largest export market. Last year, US officials reported that Canada purchased 349 billion USD worth of US goods and exported 412 billion USD to the US.
This move by the US has renewed tensions between the two countries after a period of stability. During a meeting on the sidelines of the G7 Summit in Canada earlier this month, Prime Minister Mark Carney announced that he and President Trump had agreed to finalize a new economic security agreement within 30 days.
Also on 27/6, US Treasury Secretary Scott Bessent expressed optimism about trade talks. He praised progress made with China to restore exports of essential minerals to the US. US officials are currently actively negotiating with economies like India, Vietnam, South Korea, Japan, and the European Union (EU).
Ha Thu (Reuters)
