United States President Donald Trump announced on Friday (27), on his network, the Social Truth, the immediate breakup of commercial negotiations with Canada. The decision was motivated by the Canadian government of the Digital Services Tax that directly affects American Big Techs.
“Canada, a very difficult country to negotiate, including the fact that they have charged our farmers up to 400% of tariffs for years, on dairy products, has just announced that it is putting a digital service tax on our American technology companies, which is a direct and flagrant attack on our country,” Trump wrote.
“Based on this outrageous tax, we are ending all discussions about trade with Canada, with immediate effect. We will inform Canada which fare they will have to pay to do business with the United States within the next seven days,” said the president, noting that Canada is following the example of the European Union in the taxing of big techs.
Trump’s announcement marks the return of commercial dispute between the two countries. Canadian tax provides for a 3% charge on digital companies revenue that earns more than $ 20 million per year in services for residents in Canada. Canada Finance Minister François-Philippe Champagne confirmed that the tax is in force and that the first effective payment will be charged on Monday (30). The measure will have retroactive effect since 2022 and directly affects the United States multinationals, such as the goal, owner of Facebook, Instagram and WhatsApp.
A spokesman for the Canadian government told the Financial Times That Prime Minister Mark Carneary’s team is “evaluating” the announcement of the US president and will answer “as soon as possible.”
