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United States President Donald Trump has announced the immediate termination of trade talks with Canada, reacting to a new digital tax imposed by the Canadian government on big technology companies.
In a post on social media, Trump declared that "ALL discussions on Trade with Canada" would be immediately halted and warned of new tariffs on goods crossing the border into the US next week.
"We will notify Canada of the tariff it will pay to do business with the United States of America within the next seven-day period," he said.
A new 3% tax on digital services passed by the Canadian parliament last year is set to take effect this week. It targets companies with large global revenues, most of which are American. Experts estimate it will cost firms like Amazon, Apple and Google more than $2 billion a year.
According to Canadian officials, the tax is part of an effort to ensure that multinational companies pay a fair share of taxes for the services they provide in the country.
Despite Trump's statement, Canadian Prime Minister Mark Carney hinted that his government is willing to continue negotiations.
"We will continue to conduct these complex negotiations in the best interest of Canadians," Carney told reporters.
Meanwhile, officials from the Canadian Chamber of Commerce expressed concern about the uncertainty created and the potential effects on cross-border businesses.
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