Amazon, Google, Meta, and Uber slapped with $2 billion retroactive tax bill, Trump suspends Canada trade talks
US President Donald Trump suspended trading talks with Canada, calling the country’s 3% new digital service tax and calling it a directly and open attack on our country ..
Canada’s digital service tax will affect major technology companies such as Amazon, Google, Meta and Uber.
The tax will enter into force on Monday and apply backwards and leave US companies with an invoice of $ 2 billion at the end of the month. Luck notified.
Trump responds to Canada’s posture
Trump described the tax as “ruthless ve and immediately terminated all trade discussions with Canada and promised to announce new tariffs about Canadian goods within seven days.
Trump said he later refers to the US economic leverage and expected Canada to lift the tax. “Economically we have such a power on Canada. We prefer not to use it, Tr Trump said at the Oval Office. “It won’t work well for Canada. They were stupid to do this.”
Canadian Prime Minister Mark Carney replied to the situation on Friday, saying that his country will “continue to carry out these complex negotiations for the benefit of the Canadians”. This is a negotiation.
Trade war history
This movement is the last development in Trump’s ongoing trade disputes since the beginning of the second period. The US has already imposed a 50% tariff in steel and aluminum and 25% tariffs in cars and a general 10% tax for imports from most countries.
Although Canada and Mexico are faced with separate tariffs up to 25% under the auspices of Trump’s Fentanyl smuggling, some products are still protected within the scope of the 2020 US-Mexican-Canada Agreement signed in Trump’s first period.
Despite these tensions, Canada continues to be an important trade partner that supplies most of the crude oil, electricity and critical minerals.
According to the compiled data LuckApproximately 60% of US crude oil imports are from Canada and 85% of US electricity imports.
Canada is also the largest foreign steel, aluminum and uranium suppliers to the US, and there are 34 critical minerals and metal, where the Pentagon is willing to obtain.
A long -standing problem
Daniel Belland, a professor of political science at the University of McGill at Montreal, said that it was a local tax problem, but for a while there is a source of tension between Canada and the United States because the US has been targeting technology giants.
“The Digital Services Tax Law was signed a year ago, so it has been known for a long time to emerge. “Nevertheless, President Trump waited just before his application to create drama on this issue in the context of extremely uncertain trade negotiations between the two countries.”
