
Sat Jun 28 01:34:00 UTC 2025: **News Article:**
**Trump Abruptly Halts Trade Talks with Canada Over Digital Tax Dispute**
Washington, D.C. – President Donald Trump has announced the immediate termination of all trade negotiations with Canada, citing grievances over a digital services tax impacting major U.S. tech companies. In a post on his Truth Social platform, Trump stated that Canada would soon learn the tariff rate they would face to do business in the United States, describing Canada as “very difficult to trade with.”
The move appears to be a direct response to Canada’s digital services tax, which was enacted last year and requires U.S. service providers to pay a substantial amount by June 30th. The U.S. had previously requested dispute settlement talks with Canada over the tax.
While Canada has been spared some of Trump’s broader tariffs, it already faces a separate tariff regime. Since his return to the White House in January, Trump has imposed significant levies on steel, aluminum, and automobiles. Last week, Canada announced adjustments to its 25% counter tariffs on U.S. steel and aluminum in response to Washington’s doubling of its own levies on those metals to 50%—if a trade deal wasn’t reached within 30 days. Trump’s announcement effectively negates those efforts.