United States President Donald Trump said today that his country's trade negotiations with Canada should be immediately terminated because it has no intention of dropping tariffs on American technology companies.
Trump called the tariff a "direct and blatant attack" on the United States.
In a post on his Twitter account, Trump wrote that Canada had just notified the US that it would proceed with its plan to impose tariffs that were set to take effect on Monday.
"In light of this incredibly bad tariff, we are suspending all trade talks with Canada, effective immediately. We will notify Canada within the next seven days of the Tariffs they will pay on business with the United States," Trump wrote, capitalizing the word tariff.
The Canadian Digital Services Tax applies to domestic and foreign companies when they have a relationship with internet users in Canada.
The tax, which will hit companies like Amazon, Google, Meta, Uber and Airbnb, will be 3 percent of revenue generated through Canadian users. It will be applied retroactively, meaning that by the end of the month, American companies will owe Canada $2 billion in the disputed tax.
The trade conflict between the United States and Canada began after Trump came to power, when he first began calling Canada the 51st American state and threatening to use economic measures to force it to join the United States, and then imposed high tariffs on it.
The topic of negotiations is reducing Trump's tariffs.
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