U.S. President Donald Trump has announced an immediate halt to trade negotiations with Canada, coinciding with Ottawa’s plans to implement a new tax policy targeting major technology firms. This decision, communicated through his personal social media channels, comes as both countries had aimed to finalize a trade agreement by the midpoint of July 2025.
Earlier in the year, the United States and Canada had seen relations sour, with reciprocal tariffs introduced after President Trump initiated a trade dispute and threatened to apply “economic force” to annex Canada. The current impasse reflects growing tension over Canada’s proposed digital tax, which Washington considers unjust.
On Friday, President Trump declared that he was discontinuing trade discussions, characterizing the Canadian digital tax as excessively harmful to U.S. tech companies. In addition, he stated that Washington would soon impose new tariffs on imports from Canada, with details to be made public within the following week.
Trump formalized the termination of talks in a social media post, specifying that all trade negotiations with Canada were ending immediately. He also indicated that Canada would be informed of the specific tariffs it would face for trading with the United States within a seven-day timeframe.
Speaking later at the White House, President Trump explained to members of the press that the U.S. holds significant leverage in ongoing economic negotiations with Canada.
