**Breaking News: Trump Halts Trade Talks with Canada Amid Digital Tax Clash**
In a stunning escalation of tensions, President Donald Trump has abruptly halted all trade negotiations with Canada, accusing Ottawa of launching a “blatant attack” on American tech giants through a newly implemented digital services tax. The announcement came via a post on Truth Social just hours after Canadian Prime Minister Mark Carney refused to delay the controversial tax rollout, which targets both foreign and domestic firms earning over 20 million Canadian dollars.
Trump’s declaration sends shockwaves through the trade landscape, warning that tariffs on Canadian goods could follow within just seven days. “We’re going to stop all negotiations with Canada right now until they straighten out their act,” he stated, emphasizing the economic leverage the U.S. holds over its northern neighbor. The digital tax, which took effect this past Saturday, retroactively applies to revenues dating back to 2022, potentially costing U.S. firms like Amazon, Google, and Meta a staggering $3 billion in combined tax bills.
This move has ignited bipartisan concern in Washington, with 21 lawmakers signing a letter to Trump, cautioning that Canada’s retroactive tax could set a perilous precedent, distorting global tax and trade frameworks for years to come. “They were foolish to do it,” Trump remarked, dismissing Canada’s efforts as an imitation of European tax strategies that he believes will backfire.
As the clock ticks down to potential tariffs and heightened economic friction, the stakes have never been higher. Will Canada respond in time to avert a trade war, or are we on the brink of a significant economic showdown? Stay tuned as this rapidly evolving story develops.
