The United States is halting all trade negotiations with Canada following Ottawa’s decision to impose a digital services tax on American technology companies, President Donald Trump announced Friday.
The move, disclosed in a statement on Truth Social shortly after a White House press briefing, signals a sharp escalation in trade tensions between two of North America’s closest economic partners.
“We have just been informed that Canada, a very difficult Country to TRADE with… 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,” President Trump wrote.
He criticized Canada’s trade practices broadly, highlighting long-standing disputes over agricultural tariffs, specifically referencing dairy tariffs as high as 400%.
Trump further accused Canada of mirroring the European Union’s taxation model, which also targets digital revenues from U.S.-based tech firms. “They are obviously copying the European Union… Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he stated.
The president also warned that retaliatory tariffs are imminent. “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.”
The Canadian government, led by Prime Minister Mark Carney, has yet to issue a formal response. As of Friday afternoon, Carney’s office had not responded to press inquiries.
The decision caps off a week of bold executive actions and judicial victories for the administration. Earlier Friday, the president celebrated two significant Supreme Court rulings. One, a 6–3 decision, curtailed the authority of lower courts to issue nationwide injunctions—paving the way for the administration to move forward on ending birthright citizenship in certain jurisdictions while legal challenges play out. Another upheld parental rights in public education, reinforcing protections for religious beliefs in school curricula.
Trade between the U.S. and Canada has historically been extensive and interdependent. Canada remains the largest market for American exports, while the U.S. is Canada’s top trading partner. However, relations have soured sharply since the Trump administration reimposed tariffs on Canadian goods earlier this year. Canada responded with levies on a range of American exports.