By Anjali Sharma
WASHINGTON – US President Donald Trump on Friday announced that the United States would terminate all trade talks with Canada due to Canada’s digital services tax on US tech companies, media reported.
Trump said in a post on social media that Canada has just announced that they are putting a digital services tax on American technology companies, which is a direct and blatant attack on the United States.
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” said Trump.
Trump stressed that the United States would inform Canada of the US tariffs that apply to Canadian businesses within the next seven days.
He noted that Canada is copying the European Union in introducing digital services tax.
According to media reports the US is scrambling to wind up trade talks with a large number of trading partners as the self-imposed deadline of July 9 is approaching.
White House Press Secretary Karoline Leavitt said Trump could extend the deadline.
Canadian Prime Minister Mark Carney said that he had wide-range and constructive discussions with US President Donald Trump in the White House in May.
Both leaders disagreed on tariffs lifting and the “51st state,” according to the live broadcast of CBC News reported that time.
Carney said he told Trump it’s “not useful” to repeat the 51st state idea, and added that Trump is the president who is going to say whatever he wants.
“He understands that we are having a negotiation between sovereign nations,” Carney added, quoted in media reports.
