Canada's decision to introduce a digital services tax has prompted a strong reaction from US President Donald Trump, who announced the cessation of trade relations with Canada.
Trump's Reaction to Tax
US President Donald Trump reacted to Canada's decision to impose a digital services tax, stating, "We are terminating all trade negotiations with Canada immediately."
Tariff Threat
Trump accused Canada of carrying out a "clear and brazen attack" on American tech companies, emphasizing that they are mimicking the European Union's actions. He added, "We will notify Canada within the next seven days of the tariffs they will have to pay to trade with the United States."
Economic Impact
According to the Office of the US Trade Representative, the trade volume between the two countries was approximately $762 billion last year. The introduction of this new tax could jeopardize longstanding trade relations, negatively affecting the economic balance in North America.
Donald Trump's reaction to Canada's digital services tax raises concerns about the stability of trade relations between the two neighboring countries, potentially leading to significant economic consequences.
