Trump breaks off trade talks with Canada over digital service tax

President Donald Trump on Friday announced the termination of trade negotiations with Canada over Ottawa's imposition of "digital services tax" on American tech firms, accusing them of copying the European Union.

"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," he posted on Truth Social.

"They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also," he added. "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!"

Though the replacement of Justin Trudeau with now-Prime Minister Mark Carney had been expected to ease tensions between the neighboring nations, Trump is evidently still willing to negotiate aggressively with his northern counterpart.

The move comes as the U.S. struggles to finalize trade agreements with other nations in the wake of Trump's "Liberation Day" tariffs.