Fact Check: Trump Terminates All Trade Talks with Canada Over Digital Services Tax
What We Know
On June 27, 2025, President Donald Trump announced via a post on Truth Social that he was terminating all trade discussions with Canada. He cited the implementation of a Canadian tax on tech companies, which he described as "a direct and blatant attack on our Country" (Reuters). The tax, which applies to tech companies earning over $15 million from Canadian internet users, is set to begin collecting payments retroactively from 2022, with the first payment due on June 30, 2025 (NBC News).
In his statement, Trump referred to Canada as "a very difficult country to trade with" and indicated that the U.S. would inform Canada of the tariffs they would incur for doing business in the U.S. within a week (NBC News). This decision follows a period of relatively calm trade negotiations, which had previously seen some positive developments (NBC News).
Analysis
The claim that Trump has terminated all trade talks with Canada over the Digital Services Tax is supported by multiple credible sources. Trump's own statements on Truth Social clearly indicate his intent to cease discussions due to the tax, which he perceives as harmful to U.S. interests (Reuters, NBC News). The tax is expected to generate significant revenue from U.S. companies, which adds context to Trump's aggressive stance (Politico).
The reliability of the sources is high, as they include established news organizations like Reuters and NBC News, which adhere to journalistic standards and fact-checking protocols. The statements made by Trump are direct quotes, providing a clear basis for the claim. Furthermore, the context surrounding the Digital Services Tax and its implications for U.S.-Canada trade relations is well-documented in the reporting.
However, it is important to note that trade negotiations are complex and can evolve rapidly. While Trump's announcement marks a significant shift in U.S.-Canada trade relations, the potential for future negotiations or changes in stance remains open, depending on the political landscape.
Conclusion
The claim that "Trump terminates all trade talks with Canada over Digital Services Tax" is True. The evidence from reliable sources confirms that Trump has indeed announced the termination of trade discussions in response to the Canadian tax on tech companies, framing it as a direct threat to U.S. economic interests.
