Trump announces suspension of all trade negotiations with Canada

US President Trump announced on social media on the 27th that the United States has decided to immediately stop all trade negotiations with Canada because Canada insisted on introducing a digital service tax on US technology companies.
Trump said that the United States will inform Canada of the tariff rates applicable to trade with the United States within 7 days.

Canadian Finance Minister Francois-Philippe Champagne announced on the 26th that the plan to impose a digital service tax on technology companies will not be postponed, and the digital service tax will take effect on June 30. According to the plan, the Canadian government will impose a 3% tax on the revenue of technology companies providing digital services to Canadian users or selling Canadian user data, and will be retroactive to the revenue of the relevant companies in 2022.

Currently, the United States is negotiating with Canada and other trading partners to reach an agreement before the deadline set by Trump. The United States has been opposed to Canada’s plan to impose a digital service tax and tried to put pressure on it to stop it.

Trump announced the so-called “reciprocal tariff” on April 2, triggering a plunge in US financial markets. Under pressure from multiple parties, Trump announced on April 9 that he would suspend the imposition of high “reciprocal tariffs” on some trading partners for 90 days, but maintain the 10% “base tariff” and threaten US trading partners to complete negotiations with the US before July 8.