New York: US President Donald Trump announced that the United States would terminate all trade talks with Canada due to Canada’s digital services tax on US tech companies.

Canada has just announced that they are putting a digital services tax on American technology companies, which is a direct and blatant attack on the United States, said Trump in a post on social media.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” said Trump.

The United States would inform Canada of the US tariffs that apply to Canadian businesses within the next seven days, according to Trump.

Canada is copying the European Union in introducing a digital services tax, noted Trump.

The United States is scrambling to wind up trade talks with a large number of trading partners as the self-imposed deadline of July 9 is approaching, Xinhua news agency reported.

However, White House Press Secretary Karoline Leavitt on Thursday said Trump could extend the deadline.

Earlier in May 2025, Canadian Prime Minister Mark Carney said that he had wide-ranging and constructive discussions with US President Donald Trump in the White House, although the two leaders disagreed on lifting tariffs and the “51st state,” according to the live broadcast of CBC News.

Carney said he told Trump it’s “not useful” to repeat the 51st state idea, adding that Trump is the president who is going to say whatever he wants.

“He understands that we are having a negotiation between sovereign nations,” said Carney.

Photo: Xinhua

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–IANS