US President Donald Trump lashed out at Canadian Prime Minister Mark Carney, accusing the country of a “blatant attack.”
The new potential feud between the alleys was triggered by Canada’s decision to impose a 3% digital services tax on large tech firms like Amazon, Meta, Google, Uber, and Airbnb — retroactively impacting profits from 2022 onward.
As reported by NBC News, this could leave US tech giants with a tax bill of up to $2 billion, with payment due by the end of this month.
President trump wasn’t happy with this decision and he wasn’t afraid to speak his mind. Taking to Truth Social, he wrote, “We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, 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.
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. 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. Thank you for your attention to this matter!”
Last year’s trade between the US and Canada amounted to more than $762 billion, the US Trade Representative reported. However, the newly emerged situation could likely mean a trade freeze with a top trading partner of the United States.
Carney made a comment over Trump’s harsh response, stating, “We’ll continue to conduct these complex negotiations in the best interests of Canadians.”
Canada, however, announced Sunday night — one day before the first tax payments were due — that they are walking back on the digital services tax in order to give the negotiations with the US more time to progress.
“Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Canadian Prime Minister Mark Carney said in the statement, as reported by NBC News.
Canada’s Minister of Finance and National Revenue Francois-Philippe Champagne also commented on the matter. In a statement, he said, “Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.”
Trump took the moment to slam Europe, alleging they are trying to introduce similar digital taxes.
“They have been unbelievably bad to us. If you look at past presidents, they’ve treated them very badly,” Trump said.
“They’re being very nice to me, because I get it. I know the system, and we have the cards. We have the cards far more than they do, and they have not treated us well, and they’re coming to us right now.”
He added: “They’re nasty people, and I don’t want them affecting U.S. companies. I don’t want that — if anybody’s going to affect a U.S. company, I want it to be us, and if they’re going to have to pay a penalty or fine, let it be to us.”
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