Trump Terminates Trade Talks With Canada, Threatens Devastating Tariffs!

2025-06-28 00:01:03.848

President Donald Trump announced on Friday the termination of all trade discussions with Canada, citing Canada's new digital services tax (DST) as a "direct and blatant attack." He stated that a new tariff rate for Canadian goods will be announced within seven days. The decision follows months of ongoing negotiations. Trump has consistently opposed DSTs, labeling them "non-tariff trade barriers." Canada's DST, effective Monday and retroactive to 2022, disproportionately affects American tech companies. While Canadian Prime Minister Mark Carney expressed a desire to continue negotiations, Treasury Secretary Scott Bessent indicated that higher tariffs across all Canadian goods are likely if the tax remains. Canada is a major trading partner for the US, with significant bilateral trade flows. Higher tariffs could trigger retaliatory measures from Canada, impacting both economies. Canadian business groups have urged the government to reconsider the DST to avoid further trade tensions. The situation adds to existing trade complexities, including previous tariffs on steel, aluminum, and automobiles. Despite the tariff threat, US stocks closed higher on Friday.