Fact Check: Trump Suspends All Trade Talks with Canada Immediately Over New Tech Tax
What We Know
On June 27, 2025, President Donald Trump announced that he was suspending all trade talks with Canada due to the latter's decision to proceed with a digital services tax aimed at technology firms. Trump described this tax as “a direct and blatant attack on our country” and indicated that the suspension of talks was effective immediately (AP News). The tax, which was set to take effect on June 30, 2025, would impose a 3% levy on revenues earned by companies like Amazon, Google, and Meta from Canadian users (Washington Post).
In his announcement, Trump stated, “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately” (Washington Post). This decision marked a significant escalation in the ongoing trade tensions between the U.S. and Canada.
Analysis
The claim that Trump suspended all trade talks with Canada is supported by multiple credible sources. The Associated Press, a reputable news organization, reported on Trump's statement and the context surrounding it, including the details of the digital services tax and its implications for U.S.-Canada relations (AP News). The Washington Post also corroborated this information, detailing Trump's comments and the immediate effects of his decision on trade negotiations (Washington Post).
Furthermore, the New York Times reported that the Canadian government subsequently decided to rescind the digital services tax in response to Trump's suspension of trade talks, indicating the seriousness of the situation (New York Times). This action by Canada underscores the impact of Trump's announcement and the high stakes involved in U.S.-Canada trade relations.
While some sources may exhibit bias, the information provided by these major news outlets is consistent and aligns with the events as they unfolded. The reports reflect a clear timeline of Trump's decision and its repercussions, making them reliable for this fact-check.
Conclusion
Verdict: True. President Trump did indeed suspend all trade talks with Canada immediately over the new tech tax. This decision was publicly announced and confirmed by multiple reputable news sources, highlighting the ongoing tensions between the two nations regarding trade policies.
