OAN Staff Abril Elfi and Brooke Mallory
11:14 AM – Friday, June 27, 2025
President Donald Trump has announced that the United States is ending trade discussions with Canada over its digital tax.
The move indicates a breakdown in trade negotiations and an escalation of tensions between the two countries over economic policy. On Friday, the president posted the announcement to Truth Social, calling it a “direct and blatant attack on our country.”
“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.”
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A Digital Services Tax (DST) is a tax that countries impose on large tech companies—such as Google, Amazon, and Facebook—for the revenue they generate from online services, like ads, platforms, and marketplaces within that country.
These taxes are often targeted at large U.S.-based tech companies.
U.S. officials see the tax as unfairly targeting American businesses, and under President Trump’s administration, such policies are often met with strong retaliation.
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