Trump Halts Trade Talks with Canada Over Digital Services Tax

President Donald Trump announced on Friday that the United States is ending all trade discussions with Canada due to Ottawa's decision to impose a digital services tax on American tech firms. Trump criticized Canada for emulating the European Union with the tax and threatened to impose tariffs on Canadian businesses. The move jeopardizes the trade relationship between the two countries, which have a significant trading history.

Canadian Prime Minister Mark Carney's office did not immediately respond to the announcement. The sudden development caused a negative turn in the stock market, with the S&P 500 and Nasdaq Composite dropping from earlier highs. Canada's digital services tax, targeting tech giants like Amazon, Google, and Meta, is set to be enforced retroactively from 2022.

Canadian officials have stood firm on implementing the tax despite objections from the U.S. This situation is evolving, and updates are expected.

According to the source: CNBC.