Fact Check: Trump Cancels All Trade Talks with Canada Over New Digital Tax
What We Know
On June 27, 2025, President Donald Trump announced the termination of trade talks with Canada, citing the country's decision to implement a new digital services tax targeting large technology firms, including U.S. companies like Meta, Google, and Amazon. Trump described the tax as "a direct and blatant attack on our Country" and stated that all negotiations would cease until Canada reconsiders its stance on the tax (Reuters, Washington Post). The digital services tax is set to impose a 3% levy on revenues from Canadian users, affecting both Canadian and foreign businesses, and is expected to generate substantial costs for U.S. firms (AP News).
Trump's comments came shortly after a G7 summit where he had previously expressed a desire to improve relations with Canada. However, he characterized Canada as a "difficult" partner in light of the tax decision (Washington Post). The tax, which is due to take effect imminently, has drawn criticism from various quarters, including U.S. officials and tech industry leaders, who argue it discriminates against American companies (AP News).
Analysis
The claim that Trump canceled all trade talks with Canada over the new digital tax is substantiated by multiple credible sources. Trump's own statements on social media and during press conferences clearly indicate his decision to halt negotiations in response to the tax, which he labeled as egregious and harmful to U.S. interests (Reuters, Washington Post). This aligns with his administration's broader trade strategy, which has often involved using tariffs and trade negotiations as leverage against perceived unfair practices by trading partners.
The reliability of the sources reporting this event is high. Reuters, the Washington Post, and AP News are well-established news organizations known for their journalistic standards and fact-checking processes. They provide detailed accounts of Trump's statements and the implications of the digital tax, reflecting a consensus on the matter. Furthermore, the context surrounding the announcement—Trump's fluctuating relationship with Canada and the ongoing trade tensions—adds credibility to the claim that this decision was directly linked to the digital tax issue.
Critically, while some may argue that Trump's approach to trade negotiations is aggressive and unpredictable, the evidence supports the assertion that he indeed canceled talks specifically due to the digital tax. The timing of his announcement, coupled with the language used to describe Canada’s actions, reinforces the direct connection between the tax and the cessation of trade discussions.
Conclusion
Verdict: True
The claim that Trump canceled all trade talks with Canada over the new digital tax is accurate. Trump's statements clearly indicate that the decision was a direct response to Canada's implementation of the tax, which he deemed detrimental to U.S. interests. The evidence from credible news sources supports this conclusion, confirming that the trade negotiations were indeed halted as a result of the tax decision.
