Fact Check: Trump Threatens to End U.S.-Canada Trade Talks Over New 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 and Amazon. Trump characterized these taxes as a “blatant attack” on the U.S. economy and indicated that he would inform Canada within a week about the duties they would incur to conduct business with the U.S. (New York Times, Washington Post). The digital services tax, which Canada had planned to enforce retroactively, was expected to cost U.S. firms between $900 million and $2.3 billion annually (Politico).
Analysis
The claim that Trump threatened to end trade talks with Canada is substantiated by multiple reputable sources. Both the New York Times and the Washington Post reported on Trump's abrupt decision, highlighting his description of the digital services tax as a direct affront to the U.S. economy. Trump's comments reflect a broader trend in his administration's trade policy, which has often involved using threats of tariffs and trade negotiations as leverage against perceived unfair practices by other countries.
The reliability of these sources is high, as both the New York Times and the Washington Post are established news organizations with a history of accurate reporting. They provide detailed accounts of the events, including Trump's statements and the implications for U.S.-Canada relations. However, it is essential to note that Trump's administration has a history of fluctuating positions on trade, often reversing course after initial threats, which adds a layer of uncertainty to the situation (CNBC).
Conclusion
The claim that Trump threatened to end U.S.-Canada trade talks over a new digital tax is True. The evidence from multiple credible sources confirms that Trump made this announcement, framing the tax as a significant obstacle to trade negotiations. His administration's history of using trade threats as negotiation tactics further supports the validity of this claim.
