Fact Check: Trump ends all trade talks with Canada over digital services tax dispute.

Fact Check: Trump Ends All Trade Talks with Canada Over Digital Services Tax Dispute

What We Know

On June 27, 2025, President Donald Trump announced the immediate cessation of all trade discussions with Canada, citing the country's plans to implement a digital services tax (DST) targeting large U.S. tech companies such as Meta, Google, and Amazon. Trump described these taxes as a "direct and blatant attack on our Country" and labeled Canada a "difficult" partner in a social media post (Washington Post). He stated, "So I said, we’re going to stop all negotiations with Canada right now until they straighten out their act" (Reuters). This decision marked a significant shift in U.S.-Canada relations, which had recently been improving following meetings between Trump and Canadian Prime Minister Mark Carney (New York Times).

The digital services tax, which Canada planned to enforce starting June 30, 2025, would require companies earning over 20 million Canadian dollars from digital services to pay a tax on their revenue generated from Canadian users. This tax has faced criticism from U.S. officials and tech companies, who argue it discriminates against American firms (Reuters, CBC).

Analysis

The claim that Trump ended all trade talks with Canada over the digital services tax is supported by multiple reputable sources. Trump's announcement was widely reported, confirming that he halted negotiations "effective immediately" due to Canada's tax plans (Reuters, CNBC). The timing of the announcement coincided with Canada's implementation of the DST, which Trump characterized as a retaliatory measure against U.S. businesses (Washington Post, New York Times).

The reliability of the sources reporting this event is high. Major news outlets such as the Washington Post, Reuters, and the New York Times are known for their journalistic standards and fact-checking processes. They provide detailed accounts of Trump's statements and the context surrounding the trade talks, which adds credibility to the claim. Furthermore, the implications of the digital services tax have been discussed in various economic forums, highlighting the contentious nature of international trade relations in the tech sector (Reuters, CBC).

However, it is important to note that while Trump's decision to halt negotiations is clear, the broader implications for U.S.-Canada trade relations and the potential for future negotiations remain uncertain. The situation is fluid, and the political landscape can change rapidly, especially with ongoing lobbying efforts from U.S. tech companies against the DST (Washington Post, Reuters).

Conclusion

Verdict: True
The claim that Trump ended all trade talks with Canada over the digital services tax dispute is accurate. Trump's statements and the immediate cessation of negotiations are well-documented across multiple credible sources. The decision reflects ongoing tensions between the U.S. and Canada regarding trade policies, particularly concerning taxation on digital services.

Fact Check: Trump ends all trade talks with Canada over digital services tax dispute.