US President Donald Trump has stated that trade talks with Canada will be suspended until Canada agrees to eliminate certain specific taxes. Trump made this statement during an interview on Fox News' program, "Sunday Morning Futures with Maria Bartiromo."
US- Canada Trade Talks: A new rift has emerged in the trade relations between the United States and Canada. US President Donald Trump, taking a tough stance on Canada's imposition of a Digital Services Tax, has announced that the US will not engage in any trade talks with Canada until this tax is withdrawn.
During the "Sunday Morning Futures with Maria Bartiromo" show on Fox News, Trump explicitly stated that this Canadian tax directly targets American companies, impacting tech giants like Google, Amazon, and Meta. He said, "This tax is a direct attack on American technology and will not be tolerated. Until Canada agrees to withdraw it, no progress will be made on any trade agreement."
Trump's statement comes at a time when efforts were being made to accelerate trade negotiations between the US and Canada. However, this tax dispute has soured relations between the two countries.
Why is Trump upset about the Digital Services Tax?
In fact, the Canadian government recently decided to implement a digital services tax, under which tax will be levied on the earnings of companies like Google, Amazon, and Meta. Canada argues that foreign companies earning substantial revenue from digital services in the country should also fulfill their responsibilities as taxpayers.
However, the Trump administration considers this unfair. Trump accused Canada of trying to benefit its economy by targeting American technology companies. On Friday, Trump posted on his social media platform, Truth, calling it an "open attack" on America and warned that new tariffs could be imposed on goods coming from Canada within the next 7 days.
Trump's big reveal on TikTok
In the same interview, Trump also revealed that he had found a potential buyer for TikTok. He said that this buyer is a group of several wealthy investors, whose name will be made public within two weeks. However, Trump did not clarify how much of TikTok this group would acquire and whether any American company would be involved.
The Canadian government's stance
Canadian Prime Minister Mark Carney has not yet made an official statement on this issue, but his government has already defended the digital tax. Canadian officials say this tax is necessary to maintain fair competition in the local digital market. Their argument is that while Canadian companies are taxed, foreign companies like Google, Amazon, and Meta avoid taxes, which is not right.
However, Canada may now face the threat of US tariffs. Experts believe that if the US imposes heavy tariffs on Canadian goods, it could have a major impact on the auto, agriculture, and energy sectors.
Questions raised about Trump's strategy
Analysts say that in an election year, Trump wants to support domestic technology companies and woo his voters under the pretext of trade and tax policy. But this risks souring relations with a close partner like Canada. Meanwhile, American business organizations have appealed to the Trump administration to keep the path of dialogue open, as Canada is America's third-largest trading partner. Billions of dollars in trade take place between the two countries every day, and any disruption could be detrimental to both sides.
