United States President Donald Trump announced on Friday the immediate end of commercial negotiations with Canada. The decision was motivated by the Canadian government’s adoption of a digital service tax that directly affects large US technology companies such as Google, Meta and Amazon.
In a publication on social networks, Trump stated that the tax represents “a direct and blatant attack” to the United States and promised to retaliate. According to him, Canada will “pay dearly” to continue doing business with Americans. The president also stated that a new fare about Canadian products will be released within seven days.
The tension between the two countries marks a new chapter in commercial conflicts involving the current republican management. The Canadian tax is 3% of the revenue obtained by digital companies with gains over US $ 14 million per year in the country. Although the rate was approved in 2024, the first payments are expected to occur next Monday (30).
The Canadian measure follows a model already adopted by other nations, such as the United Kingdom, but caused Washington’s strong reaction. Trump has defended a rate of tariffs as a way of facing US commercial deficits with countries such as Canada, Mexico and China. By 2024, the United States exported about $ 349 billion to Canada, while importing $ 412 billion, resulting in a $ 63 billion deficit for Americans.
