U.S. President Donald Trump has ended trade talks with Canada over the Digital Services Tax (DST) imposed by Ottawa on web giants. Trump considers the DST an “attack on our country” and demands its withdrawal before any resumption of negotiations. This decision comes as Canada and the United States were in discussions to lift U.S. tariffs on Canadian products.
The DST, which will take effect on June 30 and apply retroactively, will impose a 3% tax on the revenue of U.S. companies such as Amazon, Google, and Uber from Canadian users. The Canadian government has justified this measure as a way to modernize the tax code and capture revenue generated in Canada by foreign-based companies. The United States has long opposed the tax, threatening retaliation.
Despite Trump’s threats, Canada maintains that it will continue to negotiate in the best interests of its citizens and diversify its supply chains. The tariff talks were initially expected to reach an agreement within 30 days.
