OTTAWA — U.S. President Donald Trump said on Friday afternoon that he was “terminating all discussions on trade with Canada” and threatened new tariffs over Ottawa’s plans to push ahead with a digital services tax on Monday.
Trump said Friday Washington will notify Canada about new tariff rates required “to do business with the United States” within the next week.
Trump made the comments in a post on his social media account, calling the proposed tax a “direct and blatant attack on our country.”
Prime Minister Mark Carney has been negotiating in private with Trump and said earlier this month the two governments are pursuing a deal to end Trump’s stop-and-go tariff war. At the G7 summit in Alberta, Carney and Trump agreed to try and reach a deal by mid-July.
The digital services tax is a three per cent levy on revenue from Canadian users using digital services such as Amazon, Google, Meta, Uber and Airbnb. It takes effect on June 30 but is retroactive for three years. The initial bill is expected to total close to $2 billion.
In recent days, various industry associations have reached out to Ottawa urging the government to pause the tax and avoid U.S. retaliation. The Canadian Chamber of Commerce warned that the “punitive” tax could prompt the U.S. to target retirement and pension funds.
Earlier this month 21 members of the U.S. Congress wrote to Trump saying the tax could prompt other “discriminatory cash grabs” that largely target American companies.
The Canadian Press has asked the offices of Carney, Finance Minister François-Philippe Champagne and opposition parties for comment.
NDP trade critic Heather McPherson wrote that Canada should invest in employment insurance and sustainable jobs to protect workers from Trump’s whims.
“Appeasement doesn’t work. Betting on having a unique relationship with Trump doesn’t work. Negotiations in secret doesn’t work. Standing up for Canadian jobs and communities does,” she wrote.
— With files from Anja Karadeglija
This report by The Canadian Press was first published June 27, 2025.
Kyle Duggan and Dylan Robertson, The Canadian Press
