- By Ajeet Kumar
- Fri, 27 Jun 2025 11:45 PM (IST)
- Source:JND
US President Donald Trump said on Friday the US is "immediately" ending trade talks with Canada in response to the country's digital services tax on technology companies, calling it a "direct and blatant attack on our country."
"We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400 per cent Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also," Trump wrote on the Truth social.
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump wrote in a post on Truth Social. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period."
The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a 3 per cent levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a USD 2 billion US bill due at the end of the month.
Canada and the US have been discussing easing a series of steep tariffs Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them.
Big deal with India soon: Trump
Meanwhile, while speaking with reporters in the same event, Trump has expressed optimism about a trade deal with India and said his country is looking for "full trade barrier dropping which is unthinkable" and that he is not sure that that is going to happen.
"India, I think we are going to reach a deal where we have the right to go and do trade. Right now, it's restricted. You can't walk in there, you can't even think about it. We are looking to get a full trade barrier dropping, which is unthinkable and I am not sure that that is going to happen. But as of this moment, we agree that going to India and trade..." "We have made a deal with China...We have 200 countries plus," Trump told reporter.
ALSO READ: 'Very Big Deal With India Soon': Trump Hints Major Breakthrough In India-US Trade Relations
"At a certain point over the next week and a half or so, or maybe before we are going to send out a letter and talk to many other countries. We are going to tell them what they have to pay to do business with the US," he added.
He was responding to a query on US reciprocal tariff deadline.
Trump said on Thursday (US local time) that America has signed a deal with China and hinted that a "very big" deal with India will follow soon. Trump made the remarks while speaking at the Big Beautiful Bill event.
In his speech hinting towards trade deals, Trump said, "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India, in the China deal, we are starting to open up China."
Trump asserted that deals will not be made with every other nation.
(With inputs from agencies)
