dinero_admin The President of the United States, Donald Trump, announced the end of trade negotiations with Canada due to the tax on digital services that the Canadian country plans to implement. This tax would affect U.S. technology companies such as Meta, Amazon, and Google.
The Canadian tax levies a 3% tax on revenue earned from digital services by Canadian residents, which directly impacts U.S. tech giants. Trump called this tax a “direct and blatant attack” on his country and announced that in the next seven days he will unveil the new tariffs Canada will have to pay to do business with the US.
Canadian Prime Minister Mark Carney responded by stating that Canada will continue to conduct negotiations in the best interests of Canadians. The trade dispute between Canada and the U.S. has caused significant economic impacts and job losses in both countries.
U.S. Treasury Secretary Scott Bessent reported that multiple trade agreements are being negotiated with 18 strategic partners, but it is unclear whether Canada will be included. Trump’s move has generated concern in the Canadian market, where the benchmark stock index and currency fell following the announcement.
Trump’s decision comes after Canada and the U.S. agreed at the G7 to reach an agreement on the trade dispute within 30 days. However, Trump claimed that Canada is “copying the European Union” by implementing this type of tax on technology companies.
The Canada-U.S. trade dispute affects key sectors such as technology and agriculture, with immediate implications for North American trade and large digital multinationals.
