The Financial Post reports in its Saturday, June 28, edition that President Donald Trump ends trade talks "immediately" with Canada over the digital sales tax, due to begin this week. A Bloomberg dispatch to the Post reports that Mr. Trump made the announcement on his social media network, Truth Social.
He wrote: "We have just been informed that Canada, a very difficult Country to TRADE with ... has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country. ... Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. 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." Prime Minister Mark Carney's office responded, "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses." The DST will affect major U.S. companies such as Meta, Google, Airbnb and Amazon.
It is unclear what prompted Trump to react to the new tax coming into force, given that it has long been in the works.
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