Trump Terminates Trade Talks With Canada

Washington: President Donald Trump said on Friday that he had suspended trading talks with Canada on his plans to continue his tax on technology companies he calls “a direct and open attack on our country”.

In an article on the social media network, Trump said that Canada reported that the United States depends on the plan to impose a digital service tax that is valid for Canada and foreign businesses, which interact with online users in Canada. The tax will come into force on Monday.

“Based on this brutal tax, we immediately put all the debates on trade with Canada into force. We will report the tariff they will pay to do business with the United States in the next seven days, Tr said Trump.

Trump’s announcement was the last Swerve in the trade war he launched a second term in January. The progress with Canada was a role Coaster that the US President threw to the northern neighbor of the country and claimed that he would be absorbed again as a US state.

Canadian Prime Minister Mark Carney said on Friday that his country will “continue to carry out these complex negotiations for the benefit of the Canadians,” he said.

Trump said he later expected Canada to remove 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.”

When asked if Canada could do something to restart the talks, he said that Canada could lift the tax and would be, but he said, “It doesn’t matter to me”.

Carney visited Trump at the White House, where he was polite but solid in May. Trump went to Canada for the G7 summit in Alberta last week, and Carney said he had set a 30 -day deadline for Canada and the United States.

Digital Service Tax, Amazon, Google, Meta, Uber and Airbnb companies such as Canadian users will hit the income of 3%. It will be implemented retrospectively and will leave US companies with US bills of US $ 2 billion at the end of the month.

Matt Schruers, General Manager of the Computer and Communication Industry Association, said in a statement, “We appreciate the Efficient response of Canada to Discriminating Tax on US digital exports.” He said.

Canada and the United States are discussing a series of upright tariffs imposed by Trump on goods from America’s neighbor.

The Republican President said that the US had previously prepared to send letters to different countries and informed the new tariff rate to impose on them.

Trump applied 50% tariff on steel and aluminum and 25% tariffs for cars. In addition, although the 90 -day negotiation period has expired, it can increase the rates on July 9, it demands 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.

Treasury Secretary Scott Bessent, who addressed journalists after a special meeting with Republican senators on Friday, refrained from commenting on the news that Trump ended his trade talks with Canada.

“It was a meeting, Bess Bessent said before moving on to the next question.

Approximately 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 United States, and there are 34 critical minerals and metal to which the Pentagon is willing to obtain.

Approximately 80% of Canadian exports go to the USA

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.”