Trump says he is cutting off trade talks with Canada

US President Donald Trump has announced an immediate cessation of trade negotiations with Canada, citing the country's intent to implement a tax policy aimed at large technology companies as the primary reason for this decision. This announcement, made via social media, comes at a time when both nations were striving to finalize a trade agreement by mid-July. The relationship between the United States and Canada has been strained due to ongoing tariffs imposed on each other's goods, a situation exacerbated by Trump’s earlier threats to use 'economic force' against Canada. The president described the tax policy as an 'egregious tax' and indicated that the United States would respond by imposing new tariffs on Canadian goods within the coming week.

In his statement, Trump declared, 'We are hereby terminating ALL discussions on Trade with Canada, effective immediately.' He emphasized that the United States would inform Canada of the new tariffs that would be applicable to their trade within a seven-day timeframe. This move marks a significant escalation in the trade tensions that have characterized the relationship between the two countries in recent months, as both have engaged in a tit-for-tat imposition of tariffs. The abrupt end to negotiations raises concerns about the future of trade relations and the potential economic implications for both nations, particularly in the tech sector, which is likely to be heavily impacted by the new tax policies and tariffs.