How Graham Platner's Campaign Is Trying to Do Damage Control After Nazi Tattoo...
Even CNN Is Calling Out Dems Over This Lie About Trump's White House...
Is This the Most Insane Reaction to President Trump's East Wing Project
LOL: The White House Did Not Include *This* on Their Website. It's Classic...
Bernie Sanders Just Broke With His Party Over This Trump Policy
Oh, Look Who Donated to Trump's White House Renovation Project
The Press Trips Over Themselves to Defend a Prosecutor, and Trump's Ballroom Project...
Democrats Scraping the Bottom of the Barrel for Candidates
The Empire Strikes Back: Trump vs Venezuela, Columbia, Antifa, and Illegals
What Charlie Kirk Understood About America’s Lost Youth
Abigail Spanberger, As Governor, You’re Supposed to Make Decisions
While Washington Imports Price Controls, China Imports Our Future
Kentucky Waste Industry Mogul Promises to 'Take Out the Trash' in Washington DC
Pakistani National Sentenced to 40 Years for Smuggling Cruise Missiles, Warhead
Tennessee Attorney General Files Amicus Brief in US Supreme Court Opposing Birthright Citi...
Tipsheet

Trump Just Dropped a Trade Bomb on Canada

AP Photo/Alex Brandon

President Donald Trump announced on Friday that he is ending trade negotiations with Canada after it imposed a tax on U.S. technology companies.

The US and Canada have been working to hammer out a workable trade deal after Trump announced sweeping global tariffs in April. 

Advertisement

“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 wrote in a post on Truth Social.

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

Canada enacted the Digital Services Tax Act on June 20, 2024. The law took effect on June 28, 2024. It imposed a three percent tax on certain digital services that exceed $20 million. The tax applies to various digital services, including advertising, online stores, social media, and the monetization of user data. The first payment for these companies is due on June 30, 2025.

Canadian Prime Minister Mark Carney said last week that he would not delay the digital services tax from taking effect. 

Advertisement

Things had been quiet on the trade war front over the past few months. But it appears the back-and-forth might be heating up once again. However, Treasury Secretary Scott Bessent indicated that Trump was considering moving the deadline for trade deals from July 9 to Labor Day. This would give affected countries more time to work out deals with the US that would enable them to avoid harsh tariffs.

From NBC News:

Canada is the second-largest U.S. trading partner. Currently, the U.S. has a tariff rate of 25% applied to Canadian imports that don't comply with the U.S.-Mexico-Canada Agreement, the trade deal Trump inked during his first term before he upended it with a flurry of tariff announcements in his second.

The 25% tariff on non-compliant Canadian goods excludes energy products, which are subject to a 10% rate. Canada is also heavily impacted by Trump's 50% tax on steel and aluminum imports — the country is the largest foreign supplier of those materials to the U.S. And it has also been impacted by the 25% duties Trump has imposed on foreign-made vehicles and auto parts.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement