Trump ends trade talks with Canada over a digital services tax

President Donald Trump announced that the US is ending trade talks with Canada due to a digital services tax that will affect American tech companies. The tax, set to take effect on June 30, will impose a 3% levy on revenue generated by companies like Amazon, Google, and Meta from Canadian users. Trump called the tax a "direct and blatant attack" on the US and threatened to impose further tariffs on Canada within a week. The US companies are expected to pay around $2.7 billion to the Canadian government. Canada's finance minister had previously stated that the country would not pause the tax despite ongoing trade talks with the US. Trump has been using tariffs as a negotiating tactic with other nations, having recently reached a trade deal with China over rare earth minerals. The US had previously challenged the tax under the United States-Mexico-Canada Agreement. The digital services tax has been a point of contention between the US and Canada for years. Other countries, such as Germany, are also considering or have enacted similar taxes. Trump stated that Canada "will be paying to do business with the United States of America." The move is seen as a significant escalation in the trade dispute between the two countries.