Fact Check: Trump threatens to end trade talks over Canada's digital tax on U.S. tech.

Fact Check: Trump Threatens to End Trade Talks Over Canada's Digital Tax on U.S. Tech

What We Know

On June 27, 2025, President Donald Trump announced that the United States would terminate all trade discussions with Canada "effective immediately" due to Canada's plans to implement a digital services tax targeting U.S. technology companies. Trump described this tax as a "blatant attack" on the U.S. economy and indicated that he would inform Canada of the new duties they would incur for doing business in the U.S. within a week (New York Times, Reuters). The digital services tax, which applies a 3% levy on revenue from Canadian users, is set to take effect retroactively, potentially costing U.S. companies approximately $2.7 billion (AP News, Washington Post).

Analysis

The claim that Trump threatened to end trade talks over Canada's digital tax is substantiated by multiple credible sources. Trump's statements were made during a press conference and via social media, where he explicitly stated that the U.S. would cease trade discussions due to Canada's tax policy (Reuters, Politico).

The reliability of these sources is high, as they include major news outlets such as the New York Times, Reuters, and the Associated Press, which are known for their rigorous journalistic standards. Each source corroborates the details of Trump's announcement, including the immediate suspension of trade talks and the reasons behind it.

However, it is important to note that while Trump has a history of making aggressive trade threats, the actual implementation of tariffs and trade policies can be subject to change based on market reactions and political negotiations (Washington Post). This context adds a layer of complexity to the situation, as Trump's threats may not always lead to immediate or lasting actions.

Conclusion

The claim that Trump threatened to end trade talks with Canada over its digital tax on U.S. tech is True. The evidence from multiple reputable sources confirms that Trump made this announcement and expressed strong opposition to Canada's tax policy, framing it as a direct threat to U.S. economic interests.

Fact Check: Trump threatens to end trade talks over Canada's digital tax on U.S. tech.