In a post on Truth Social, Trump called Canada a "very difficult" country to trade with. He pointed out that the Digital Services Tax announced by the Canadian government is a blatant attack on America and its businesses
"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 per cent 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. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us," US President said
The Government of Canada has introduced the digital services tax (DST). The DST requires foreign and domestic large businesses to pay tax on certain revenue earned from engaging with online users in Canada if they meet certain conditions, as per a statement issued by the Canadian Revenue Agency
Trump further said that Canada will be informed about the tariffs they will have to pay to do business with the US within the next seven days
"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. Thank you for your attention to this matter!" he wrote
Canadian Prime Minister Mark Carney said Friday that his country would "continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation"
"Economically we have such power over Canada. We'd rather not use it," Trump said in the Oval Office. "It's not going to work out well for Canada. They were foolish to do it"
When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said, "It doesn't matter to me"
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