Trump Stops Trade Talks With Canada Over Tech Tax
The contentious trade talks between the United States and Canada continued today when the Canadian brain trust informed Trump that they intended to proceed with their plan to tax technology companies.
Canada apparently thinks it’s a good idea to skim profits, but Trump sees it differently, calling it “a direct and blatant attack on our country.”
When Mark Carney became the 24th Prime Minister of the Great White North, everyone knew that it would be like blending oil and water, and so far it hasn’t disappointed. This afternoon, Trump responded to hearing that the tax is set to take effect on Monday. He posted on Truth Social:
“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.”
Personally, I look forward to seeing what Trump will respond with. This digital service tax that Canada plans to impose will affect both Canadian and foreign businesses that engage with online users in Canada.
The tax will impinge on the likes of Google, Meta, Amazon, Airbnb, and Uber with a 3 percent levy on all revenue from Canadian users. The tax will take effect retroactively, leaving U.S. companies with a massive $2 billion bill due at the end of the month.
Canada’s timing isn’t great, as the two countries have been discussing easing some of the steep tariffs imposed on goods from America’s neighbor.
Earlier in the day, before Canada informed Trump of their intentions, he informed reporters that the U.S. would soon send letters to various countries, notifying them of the new tariff rates his administration would impose.
Fresh off the bombing of Iran, Trump had been toying with the Idea of removing the sanctions on Iran to allow it a chance for a speedy recovery. He abandoned that idea after receiving Iran’s response.
“I get hit with a statement of anger, hatred, and disgust, and immediately dropped all work on sanction relief, and more.”
He even went as far as to say that he would not rule out bombing them again. When asked about it at a news conference, he responded:
“Sure, without question, absolutely.”
Now Canada has lit yet another fuse. It should be interesting.
