Fact Check: Trump suspends all trade talks with Canada immediately over tech tax.

Fact Check: Trump Suspends All Trade Talks with Canada Immediately Over Tech Tax

What We Know

On June 27, 2025, President Donald Trump announced that he was immediately suspending trade talks with Canada due to the country's plans to implement a digital services tax on technology firms. Trump described the tax as “a direct and blatant attack on our country” and stated that discussions on trade would be terminated effective immediately (AP News). The digital services tax, which applies a 3% levy on revenue from Canadian users for companies like Amazon, Google, Meta, Uber, and Airbnb, was set to take effect shortly after Trump's announcement (Reuters).

In his social media post, Trump indicated that Canada had informed the U.S. of its decision to proceed with the tax, which he claimed would result in a $2 billion bill for U.S. companies due at the end of the month (Washington Post). He emphasized that the U.S. would notify Canada of the new tariffs they would face as a consequence of this tax (AP News).

Analysis

The evidence from multiple reputable sources confirms that Trump did indeed suspend trade talks with Canada over the digital services tax. The announcement was made publicly and was widely reported across major news outlets, including the Associated Press and Reuters, which are known for their journalistic integrity and reliability.

The context of the announcement is crucial; it reflects ongoing tensions between the U.S. and Canada regarding trade policies, particularly those affecting U.S. technology firms. Experts have noted that the digital services tax has been a contentious issue for some time, with its implementation being anticipated (AP News). Trump's reaction appears to be part of a broader strategy to leverage economic pressure in trade negotiations, a tactic he has employed throughout his presidency.

While Trump's comments about Canada being "foolish" for implementing the tax may reflect his personal views and political strategy, they do not detract from the factual basis of his suspension of trade talks. The timing of his announcement, just before the tax was set to take effect, suggests a calculated move to exert pressure on Canada (PBS).

Overall, the sources used in this analysis are credible and provide a consistent narrative regarding Trump's actions. The Associated Press, Reuters, and Washington Post are established news organizations with a history of accurate reporting.

Conclusion

Verdict: True. President Trump did suspend all trade talks with Canada immediately over its plans to implement a digital services tax on technology firms. This claim is supported by multiple reliable sources and reflects the ongoing complexities in U.S.-Canada trade relations.

Fact Check: Trump suspends all trade talks with Canada immediately over tech tax.