Trump Pumps The Brakes On Trade Negotiations with Canada

President Donald Trump announced the termination of trade negotiations with Canada on Friday via a Truth Social post, indicating that a new tariff rate would soon be revealed. This decisive move follows Canada's introduction of a digital service tax, which Trump characterized as “a direct and blatant attack on our Country.” He stated, “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” asserting that the tariff details would be shared within the next week.Digital service taxes allow countries to impose levies on online service providers, even if unprofitable. American technology giants are notably affected, as highlighted in a Congressional Research Service report. Major Canadian concerns express that these taxes could jeopardize trade relations with the U.S. Amid escalating tensions, Prime Minister Mark Carney's office acknowledged the situation, with the Business Council of Canada emphasizing the risks of unilateral tax implementation. As stock markets reacted negatively, the ramifications for both national economies remain uncertain.