Trump Lowers the Hammer on Canada: US Terminating All Trade Discussions ‘Effective Immediately’
On June 27, 2025, President Donald Trump announced the immediate termination of trade talks with Canada due to the imposition of a Digital Services Tax on American technology companies, which he described as a “direct and blatant attack” on the United States. In his statement,trump accused Canada of unfair trade practices,such as imposing high tariffs on U.S. dairy products. Following this, he declared that Canada would soon be informed about the tariffs they would incur when conducting business with the U.S. This proclamation coincided with a recent 90-day tariff pause that Trump had previously instituted,allowing for ongoing trade negotiations with other countries like China and the UK. Trump indicated that despite progress with some nations, others would face new tariffs, emphasizing that the U.S. would be proactive in establishing trade agreements worldwide.
President Donald Trump announced on Friday that his administration is ending trade talks with Canada, “effective immediately.”
He wrote in a post on , “We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country.”
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also,” Trump continued. “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,” he concluded.
Donald J. Trump 06.27.25 01:44 PM EST pic.twitter.com/kqmNyDXwgJ
— Commentary Donald J. Trump Posts From (@TrumpDailyPosts) June 27, 2025
Axios reported that “[p]ayments related to Canada’s Digital Services Tax are due on Monday. Business and tech groups have been pressing the Trump administration to push Canada to delay the payment date, or to renegotiate the policy together as part of broader trade talks.”
“The cut-off in trade talks comes less than two weeks before the ‘Liberation Day’ tariff pause expires, though Treasury Secretary Scott Bessent said on Friday that deadline could be extended — possibly to Labor Day,” the outlet added.
In early April, Trump announced a 90-day reciprocal tariff pause, saying most nations would be charged a 10 percent universal tariff rate while trade negotiations proceeded.
The president left in place a 25 percent tariff on Canadian automobiles being imported into the U.S., and a 25 percent tariff on Canadian steel and aluminum products, WBAL-TV reported in May.
FOX Business senior correspondent @CGasparino joins @AmericaRpts to weigh in after the Trump administration announced a 90-day pause on some tariffs and 125% tariffs on China. pic.twitter.com/AmhmQZypdr
— Fox News (@FoxNews) April 9, 2025
During a news conference on Friday, Trump announced that the U.S. has made a deal with China during the 90-day pause and “probably four or five different countries,” including the United Kingdom.
He also pointed to India as another trade partner likely willing to make a deal soon.
President Donald Trump says the US has made a trade deal with “probably four or five different countries,” naming agreements with China and the UK. Trump also says they’re close to reaching a deal with India. He speaks at the White House https://t.co/foJ62nerC2 pic.twitter.com/EPxct4U5SD
— Bloomberg TV (@BloombergTV) June 27, 2025
But Trump added that there are over 200 countries to potentially negotiate with, so his administration plans to send out a letter in the next week-and-a-half or so and tell them what their tariff rate will be.
“We have a lot of great things going, and we’re getting along with countries,” the president said. “But some will be disappointed because they’re going to have to pay tariffs.”
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