Trump halts trade negotiations with Canada due to its digital services tax proposal
Donald Trump, the US president, declared that all trade negotiations with Canada would be suspended immediately and indicated his intention to levy significantly high tariffs on imports from Canada.
This measure was taken after the finance department of Canada verified intentions to impose a 3% digital services tax on revenue generated by Canadian users of major digital platforms, effective from 2022.
Trump characterized the new Canadian tax, which could result in retroactive payments of up to $2 billion for American technology companies, as a direct assault on the US.
The president warned the European Union about comparable digital taxes, indicating that the US possesses considerable economic influence in these global trade negotiations.
- The announcement led to market instability and highlights ongoing trade tensions between the US and Canada, one of its largest trading partners.