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Trump Halts Trade Negotiations with Canada Over Digital Tax Dispute

June 29, 2025 - 02:52

Trump Halts Trade Negotiations with Canada Over Digital Tax Dispute

President Trump has declared the suspension of trade negotiations with Canada, citing the country's proposed digital services tax on technology firms as an "egregious" attack on U.S. interests. This decision marks a significant escalation in the ongoing trade tensions that have characterized his second term in office.

In a bold move, Trump threatened to impose tariffs within seven days if Canada proceeds with the tax, which he argues unfairly targets American companies operating in the digital space. The proposed tax has been a contentious issue, with critics claiming it disproportionately affects U.S. tech giants.

In response, Canadian Prime Minister Carney reiterated the nation's commitment to protecting its economic interests and emphasized the importance of pursuing a fair and equitable trade relationship. As both countries brace for potential economic repercussions, the standoff highlights the complexities of international trade in an increasingly digital economy. The situation remains fluid, with stakeholders closely monitoring developments in the coming days.


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