On June 27, 2025, U.S. President Donald Trump announced the cessation of trade negotiations with Canada. This decision was made in response to Canada's implementation of a digital services tax aimed at U.S. tech companies.
The tax, effective July 1, 2025, imposes a 3% levy on revenues from online advertising, social media, and data sales. Trump labeled this tax a "direct and open attack" on the United States and stated that tariffs would be imposed in the coming weeks.
"In light of this egregious tax, we are hereby terminating ALL discussions on trade with Canada, effective immediately," Trump wrote in a Truth Social post. "We will inform Canada of the tariff they will pay to do business with the United States of America within the next seven days."