President Donald Trump announced the immediate end of all trade negotiations with Canada in response to the Canadian digital services tax affecting U.S. tech companies. The move reflects escalating tensions in North American trade and Canada’s resistance to pressure from Washington.

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On Friday, June 27, 2025, U.S. President Donald Trump announced via his Truth Social network the immediate termination of all trade negotiations with Canada. This decision comes after Ottawa implemented a digital services tax affecting large U.S. tech companies,a measure Trump labeled a “direct and flagrant attack” against his country.

Canada, which along with Mexico is part of the USMCA trade agreement, announced the retroactive application of this tax from 2022, potentially generating a $2 billion debt for U.S. companies. Trump’s response was blunt, further announcing that within the next seven days, he will inform Canada of the tariff it must pay to do business on U.S. soil.

Trump complained that negotiating with Canada is “extremely difficult” and criticized tariffs of up to 400% imposed by Ottawa on U.S. dairy products,a policy that has historically affected American farmers. He also pointed out that Canada is imitating the European Union, which has applied similar taxes and is currently in negotiations with Washington.

Donald J. Trump Truth Social 06.27.25 01:44 PM EST pic.twitter.com/kqmNyDXwgJ

— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 27, 2025

For his part, Canadian Prime Minister Mark Carney reaffirmed his commitment to dialogue and negotiations despite Trump’s announcement. Carney assured that they will continue working for the benefit of Canadians and rejected the U.S. stance, calling the doubling of steel and aluminum tariffs by the U.S. “illegal, illogical, and unjustified.”

The Canadian case shows how the United States uses its economic power to pressure its neighbors, imposing tariffs and sanctions that affect productive sectors and generate political tensions. Trump’s insistence on imposing tariffs and threatening extreme measures,such as the idea of turning Canada into a “51st state”,has sparked nationalist sentiment in Canada and a strong defense of its economic and political independence.

Trump’s decision to end trade negotiations with Canada after the implementation of the digital services tax is another chapter in the escalation of commercial and political confrontations in North America.

This episode demonstrates the U.S. strategy of resorting to protectionist and coercive measures to maintain its hegemony, while Canada and other countries seek to resist and defend their sovereign interests. This situation is seen as a reflection of the imperialist dominance that also affects the region, reinforcing the need for unity and solidarity among peoples to face these economic and political aggressions.

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