UPDATE: Trump Accepts Hamas' Claims of Cooperation on Gaza Peace Plan
VA Dem Attorney General Candidate Wished Death on GOP Lawmakers
Hamas Just Made a Major Announcement on the Gaza War, But Will They...
Justice Kavanaugh's Would-Be Assassin Gets Light Sentence Because of His Trans Identity
Britain's Soft-on-Crime Policies Allowed the Manchester Synagogue Terror Attack to Happen
'This Is a Big Day:' President Trump Speaks About Hamas Agreement to Release...
Sen. Josh Hawley Says He's 'Baffled' by FDA's Approval of Another Abortion Drug
Hollywood Hates Censorship but Won't Act, The Atlantic Idiotically Compares Charlie Kirk t...
UK Home Secretary Shabana Mahmood Says She's 'Surprised' by Name of Manchester Synagogue...
Broadview Police Chief Ready to Tear Down Fence Around ICE Facility
Equity: Zohran Mamdani Will Eliminate Gifted Programs From NYC Schools
Sean 'Diddy' Combs Sentenced to 4 Years, 2 Months for Prostitution-Related Crimes
Illegal Alien with 30-Year Rap Sheet Ran Iowa School District
WATCH: Tim Walz Explains 2024 Loss With Wild Debate Excuse
Cancel Netflix: Conservative Leaders Call Out Alleged Radical Agenda
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