Fact Check: Trump declares end to U.S.-Canada trade talks over new digital tax.

Fact Check: Trump Declares End to U.S.-Canada Trade Talks Over New Digital Tax

What We Know

On June 27, 2025, President Donald Trump announced the immediate cessation of trade negotiations with Canada, citing the country's implementation of a digital services tax targeting large U.S. tech companies such as Meta, Google, and Amazon. Trump characterized this tax as "a direct and blatant attack on our Country" and labeled Canada a "difficult" partner in trade discussions (Washington Post, New York Times). The tax, which was set to take effect shortly, would apply to companies earning over 20 million Canadian dollars from digital services, and American tech firms had expressed significant opposition to it (Reuters, AP News).

Trump's decision to halt negotiations marked a notable shift in the U.S.-Canada relationship, which had recently shown signs of improvement under Canadian Prime Minister Mark Carney. Prior to this announcement, discussions were ongoing to finalize a new trade agreement (CNBC).

Analysis

The claim that Trump declared an end to U.S.-Canada trade talks over the new digital tax is substantiated by multiple reputable sources. Each source confirms that Trump explicitly stated he was terminating discussions due to Canada's tax plans, which he described as unfairly targeting American businesses. The Washington Post and New York Times both detail Trump's remarks and the implications of his decision, emphasizing the potential economic fallout and the historical context of U.S.-Canada trade relations.

The reliability of these sources is generally high, as they are established news organizations with a track record of accurate reporting. However, it is important to note that Trump's administration has often been characterized by fluctuating policies and statements, which can complicate the interpretation of his declarations. While the immediate cessation of trade talks is clear, the long-term implications and whether negotiations might resume remain uncertain.

Conclusion

The claim that Trump declared an end to U.S.-Canada trade talks over the new digital tax is True. Multiple credible sources confirm that Trump made this announcement, citing the digital services tax as the primary reason for halting negotiations. His statements reflect a broader tension between the U.S. and Canada regarding trade policies, particularly as they pertain to technology companies.