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Concealed Republican > Blog > Politics > Donald Trump Cuts Off Canada Trade Talks Over Big Tech Shakedown Scheme [WATCH]
Politics

Donald Trump Cuts Off Canada Trade Talks Over Big Tech Shakedown Scheme [WATCH]

Jim Taft
Last updated: June 28, 2025 5:03 pm
By Jim Taft 5 Min Read
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Donald Trump Cuts Off Canada Trade Talks Over Big Tech Shakedown Scheme [WATCH]
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President Donald Trump announced Friday that the United States is suspending all trade negotiations with Canada, citing Ottawa’s planned digital services tax on major U.S. technology companies.

The Canadian tax, set to take effect on Monday, has drawn sharp criticism from the White House and is now prompting a shift in U.S.-Canada trade relations.

In a statement posted to Truth Social, President Trump called the policy “a direct and blatant attack on our country,” and declared that the United States is “terminating ALL discussions on Trade with Canada, effective immediately.”

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He added, “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.”

HOLY CRAP! Trump just CUT OFF Canada from ANY trade negotiations!

Have fun in a recession!

“We are hereby terminating ALL discussions on Trade with Canada, effective immediately.” pic.twitter.com/hGe2vUFsa5

— Gunther Eagleman™ (@GuntherEagleman) June 27, 2025

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The Canadian measure imposes a 3% levy on revenue generated from Canadian users by large digital companies, including Amazon, Google, Meta, Uber, and Airbnb.

The tax will apply retroactively to revenue dating back to 2022 and could result in U.S. firms owing an estimated $2 billion to Canadian authorities by the end of this month.

Speaking to reporters later on Friday, President Trump reiterated his opposition to the policy, saying, “Canada has been a very difficult country to deal with over the years.”

He expressed confidence that Ottawa would eventually reverse course, stating, “We have all the cards. We have all—every single one.”

“We do a lot of business with Canada, but relatively little. They do most of their business with us,” Trump added.

“Economically, we have such power over Canada, I’d rather not use it.”

Canada has been a very difficult country to deal with over the years

We have all the cards, we have every single one, we don’t want to do anything bad, but they have Economically, we have such power over Canada. … “We’re going to stop all negotiations with Canada right now… pic.twitter.com/TUGTTchZt5

— Steve Gruber (@stevegrubershow) June 27, 2025

The administration views the digital services tax as a “non-tariff trade barrier” and has raised similar objections to such policies in other international negotiations.

Trump accused Canada of “copying the European Union,” which has implemented its own version of the tax in past years and is also engaged in ongoing trade discussions with the United States.

Canada had been engaged in talks with the U.S. to potentially ease steep tariffs imposed earlier this year.

However, the introduction of the digital tax has resulted in those talks being halted, with President Trump making clear that a response—including new tariffs—will be announced within days.

While the U.S. is currently negotiating with several countries to delay or cancel their own digital service tax implementations ahead of a July 9 deadline for U.S. counter-tariffs, Canada and Mexico are not part of those talks.

Earlier this year, the Trump administration imposed tariffs on both nations in connection with fentanyl trafficking and migration concerns.

Trade discussions with America’s neighbors are being handled separately from the broader international negotiations.

President Trump’s recent visit to Canada for the G7 summit included discussions with several foreign leaders on global security and economic issues, but he departed early to address developments concerning Iran.

Meanwhile, Treasury Secretary Scott Bessent said recently that several countries may pause or cancel their digital taxes in return for Congressional Republicans blocking a proposed tax on foreign investors.

That proposal had been included in the administration’s upcoming economic legislation package.

Bessent did not specify which countries were part of those talks.

Canadian officials, including Prime Minister Mark Carney, have responded by reaffirming their commitment to the digital services tax and indicating a willingness to continue negotiations.

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