Trump Announces Suspension of Trade Talks with Canada Over Digital Tax

June 28, 2025 - 05:02

President Donald Trump recently took to his social media platform to announce that trade negotiations with Canada have been put on hold. This decision comes in response to Canada’s confirmation that it will proceed with its digital services tax, which targets both Canadian and foreign companies that interact with online users within the country.

The tax, which is scheduled to take effect on Monday, has sparked significant controversy and debate among businesses and policymakers alike. Critics argue that such a tax could hinder economic growth and strain international relations, while proponents believe it is a necessary step to ensure that digital companies contribute fairly to the economy.

The suspension of trade talks marks a significant development in U.S.-Canada relations, as both nations have previously engaged in discussions aimed at strengthening economic ties. With the digital services tax looming, the future of these negotiations remains uncertain, raising concerns about potential repercussions for cross-border trade.