Trump Halts Canada Trade Talks Over Digital Tax

President Donald Trump announced the immediate suspension of all trade talks with Canada in response to Canada’s new 3% digital services tax (DST) on major tech companies, many of which are American. Trump called the DST a 'direct and blatant attack' and accused Canada of copying European Union policies, which are also being negotiated with the U.S. The Canadian DST, targeting revenues from online services, marketplaces, advertising, and user data sales, is expected to raise about $2.7 billion from U.S. firms. Trump also cited longstanding concerns over Canadian tariffs on U.S. agricultural products like dairy as part of his decision. He warned that new tariffs on Canadian goods will be announced within a week, despite recent G7 efforts to resolve digital tax disputes. Canadian officials have not yet responded, but experts warn the move could have significant economic consequences for cross-border trade.