Trump Cuts Off Trade Talks With Canada Over Digital Services Tax

President Donald Trump on Friday said he was “terminating ALL discussions on Trade” with Canada over the country’s new digital services tax that aims to collect billions of dollars from American tech giants like Meta and Amazon, starting on Monday.

“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,” Trump posted on Truth Social.

The president then said he was canceling all trade discussions with America’s northern neighbor due to the “egregious Tax.”

He added “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,” before adding his trademark sign-off, “Thank you for your attention to this matter!”

Canada’s DST is a 3% tax on large tech companies with more than about $800 million in annual revenue. It targets companies involved in social media services and online advertising, which puts tech giants like Meta, the parent company of Facebook and Instagram, Amazon, and Google-parent Alphabet on the hook for payments.

The first tax payment is due on Monday, and is retroactive to sales made since the start of 2022. The Wall Street Journal estimated that initial payment would be around $3 billion for the collective U.S. firms being taxed.

Upon the president’s post on Friday, Canadian Prime Minister Mark Carney’s office shared a brief response.

“The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses,” his office said.

The post Trump Cuts Off Trade Talks With Canada Over Digital Services Tax appeared first on TheWrap.