The Financial Post reports in its Saturday edition that U.S. President Donald Trump signed an executive order on Thursday for reciprocal tariffs, highlighting Canada's digital services tax as a major trade issue. A Canadian Press dispatch to the Post reports that the White House labelled the digital taxes in Canada and France as "unfair" for targeting American companies. On Thursday, Mr. Trump said Canada is a "very serious contender to be our 51st state." Canadian Chamber of Commerce's Matthew Holmes says Mr. Trump's threats are undermining business certainty in Canada. Mr. Holmes believes the reciprocal tariff order is largely aimed at other markets -- places like Europe, South Korea, Japan and India. The details, however, are few, and the bigger picture is alarming. Mr. Holmes says, "The broader signal it sends is an escalation, a broad proliferation of tariffs, widening the likelihood of a trade war that's broad, hitting multiple economies." The Business Council of Canada's Goldy Hyder says the tax "continued to be an issue" raised in meetings he had in Washington last week. "It is viewed by Americans as an irritant that violates the USMCA in the same way that Canadians believe tariffs violate the agreement."
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