President Donald Trump said Friday that he had terminated trade discussions with Canada, citing an incoming Canadian tax on tech companies including ones based in the U.S..
In a post on Truth Social, Trump referred to Canada as “a very difficult country to trade with” and said that its levy on tech firms — the first payment for which is due Monday — “is a direct and blatant attack on our Country.”
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”
Canada is the second-largest U.S. trading partner. Currently, the U.S. has a tariff rate of 25% applied to non-USMCA goods that are imported from Canada. That excludes energy products, which Trump has applied a 10% tariff rate to. It also bears much of the brunt of Trump’s 50% tax on steel and aluminum imports — it is the largest foreign supplier of those materials to the U.S.
The office of Canadian Prime Minister Mark Carney did not immediately respond to a request for comment.
Last week Canada’s finance minister said that he would not delay implementation of a digital services tax even as U.S. trade talks continue. Any firm that makes more than $15 million off of Canadian internet users is subject to a 3% tax on those revenues.
