President Donald Trump has announced that the U.S. is terminating all trade discussions with Canada immediately. The move comes in retaliation to Canada's implementation of a Digital Services Tax targeting large tech companies, including many U.S.-based firms.

Taking to Truth Social on Friday afternoon, Trump took aim at Canada's tariffs on American dairy products, which he cited as "egregious." He then compared Canada's tax on tech companies to that of the European Union, which he also noted is under discussion.

"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," he wrote.

Trump 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."

Donald J. Trump Truth Social 06.27.25 01:44 PM EST pic.twitter.com/kqmNyDXwgJ

— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 27, 2025

The Digital Services Tax was first introduced in 2024 and is set to take effect on June 30. Last week, Finance Minister François-Philippe Champagne said Canada would "go ahead" with the tax despite ongoing negotiations with the U.S.

The bold move from Trump comes after tensions between Canada and the U.S. appeared to be decreasing following Mark Carney's victory in the federal election. A reporter even recently suggested Carney has come to be known as the "Trump whisperer" during an interview at the NATO summit.

The prime minister commented on Trump's economic measures Friday afternoon: "We'll continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation."

Please sign our petition to stop Carney’s Internet tax and to shut down his censorship agenda!

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Goal: 15,000 signatures

Mark Carney just lit the match on a trade war with the U.S. by pushing an Internet tax that targets American companies like Netflix, YouTube, and Instagram. Trump hit back hard — blasting Carney on social media and cancelling all trade talks with Canada. But this isn’t just about tax — it’s step one in Carney’s real plan: regulating the Internet and reviving Trudeau’s censorship bill.

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