Sun Jun 29 21:20:00 UTC 2025: **U.S. Halts Trade Talks with Canada Amid Digital Tax Dispute, Threatens Tariffs**

**KANANASKIS, ALBERTA** – Trade negotiations between the United States and Canada have abruptly collapsed after President Donald Trump announced he was “terminating” all discussions with the northern neighbor. The announcement came Friday during the G7 Summit in Kananaskis, Alberta, where Trump met with Canadian Prime Minister Mark Carney.

The move follows escalating tensions over Canada’s upcoming Digital Services Tax (DST), a 3% levy on tech revenues generated from Canadian users that is set to take effect on June 30. President Trump has condemned the tax as a “direct and blatant attack” on the U.S., arguing that it disproportionately impacts American tech companies.

“We are hereby terminating ALL discussions on trade with Canada, effective immediately,” Trump stated. “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.”

The Trump Administration had urged Canada to pause or eliminate the tax, but Finance Minister François-Philippe Champagne affirmed Canada’s commitment to the DST, stating it was voted by parliament. The bill works retroactively, so large tech companies such as Apple, Google, and Meta stand to be hit with large payments.

In response to Trump’s announcement, the Canadian government immediately imposed a steel quota with a 50% tariff on imports exceeding that quota.

Experts are divided on the long-term impact of the stalled negotiations. Some, like former Canadian diplomat Colin Robertson, believe Trump’s actions are a negotiating tactic, but Goldy Hyder, CEO of Business Council of Canada, expressed concern about the growing uncertainty for businesses.

U.S. Treasury Secretary Scott Bessent indicated that U.S. Trade Ambassador Jamieson Greer is likely going to open a 301 investigation on the tax, which would allow the U.S. Trade Representative (USTR) to investigate any potential harm on U.S. businesses.

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