Fact Check: Trump Terminates ALL Trade Discussions with Canada Over Digital Services Tax
What We Know
On June 27, 2025, President Donald Trump announced that he was terminating all trade discussions with Canada due to Canada's plans to implement a digital services tax targeting technology firms. In a statement, Trump described the tax as "a direct and blatant attack on our country" and indicated that the discussions were suspended "effective immediately" (AP News). The digital services tax was set to impose a 3% levy on revenue generated by companies like Amazon, Google, and Meta from Canadian users, which would have resulted in significant financial implications for U.S. companies (Reuters).
Trump's announcement came shortly after Canada confirmed its intention to proceed with the tax, which was scheduled to take effect on June 30, 2025 (NPR). In his social media post, Trump stated that the U.S. would inform Canada of the new tariffs they would incur for doing business with the U.S. within a week (AP News).
Analysis
The claim that Trump terminated all trade discussions with Canada is substantiated by multiple credible news sources. Trump's own statements, as reported by the Associated Press and Reuters, confirm that he suspended discussions in direct response to Canada's digital services tax (AP News, Reuters).
The context surrounding this announcement is critical. The digital services tax had been a point of contention between the two nations, with U.S. officials arguing that it unfairly targeted American tech companies. Trump's decision to terminate discussions can be seen as a strategic move to exert pressure on Canada to reconsider its tax policy (NPR).
While some analysts have suggested that Trump's approach may have been politically motivated, given the timing and the ongoing tensions in U.S.-Canada trade relations, the immediate impact of his announcement was clear: it effectively halted negotiations that had been ongoing (Reuters).
Conclusion
The claim that Trump terminated all trade discussions with Canada over the digital services tax is True. The evidence from multiple reputable sources confirms that Trump made this announcement in direct response to Canada's decision to implement the tax, which he characterized as an attack on U.S. interests. His statements and the surrounding context support this conclusion.
