Fact Check: Trump Threatens to End Trade Talks with Canada Over Digital Tax
What We Know
On June 27, 2025, President Donald Trump announced that the United States would terminate all trade discussions with Canada, citing the country's plan to implement a digital services tax targeting large U.S. tech companies such as Google, Amazon, and Meta. Trump characterized these taxes as a “blatant attack” on the U.S. and stated that he would inform Canada within a week about the new duties they would incur for doing business with the U.S. (New York Times, Washington Post). This decision marked a significant shift in U.S.-Canada relations, which had been improving under Canadian Prime Minister Mark Carney's leadership. The digital services tax, which Canada has been planning to implement, is retroactive and expected to cost U.S. companies approximately $2.7 billion (New York Times).
Analysis
The claim that Trump threatened to end trade talks with Canada is supported by multiple reputable sources. Both the New York Times and the Washington Post reported on Trump's announcement, detailing his strong opposition to the digital services tax and his assertion that the U.S. would stop negotiations until Canada "straightens out" its tax policies.
The reliability of these sources is high, as they are established news organizations known for their rigorous journalistic standards. The New York Times and The Washington Post have extensive coverage of U.S. politics and trade issues, making them credible sources for this information.
Furthermore, Trump's comments reflect a broader trend in his administration's approach to trade, where he has frequently used threats of tariffs and negotiations as leverage against perceived unfair practices by other countries. The digital services tax has been a contentious issue, with U.S. officials from both parties criticizing it as discriminatory against American companies (PBS).
Conclusion
The claim that Trump threatened to end trade talks with Canada over the digital tax is True. His statements, as reported by multiple credible news sources, confirm that he has taken a hard stance against Canada's planned tax, which he views as an unfair attack on U.S. businesses. The implications of this decision could lead to significant economic consequences for both countries, particularly in light of the close trading relationship they share.
