US President Donald Trump has voiced strong criticism against Canadian Prime Minister Mark Carney, accusing Canada of conducting a ‘blatant attack.’
The Source of the Dispute
The disagreement between the two nations surfaced after Canada decided to impose a 3% digital services tax on tech giants such as Amazon, Meta, Google, Uber, and Airbnb.
This move targeted profits from as far back as 2022, potentially resulting in a tax bill of up to $2 billion for these US-based companies, as reported by NBC News.
Taking to his social media platform, Truth Social, President Trump expressed his discontent: “We’ve been informed that Canada, which has posed challenges in trade, including imposing tariffs up to 400% on our dairy products for years, has now declared a Digital Services Tax on our American Technology Companies. This action is a direct and blatant attack on our Country.”
Trump continued, “They are mimicking the European Union, who are also embroiled in similar discussions with us. Due to this unjust Tax, we are discontinuing ALL trade negotiations with Canada, effective immediately.
Canada will be informed about the tariffs they’ll face to do business with the United States within the next week. Thank you for attending to this matter!”
The economic ties between the US and Canada are significant, with trade between the two amounting to over $762 billion last year according to the US Trade Representative. This newly developed tension could potentially disrupt trade with one of the US’s key trading partners.
Canadian Prime Minister’s Perspective
In response to Trump’s comments, Prime Minister Carney emphasized Canada’s commitment to managing these complex discussions for the benefit of Canadians.
Canada has since announced that they will postpone the digital services tax. This decision aims to allow more time for negotiations with the United States to evolve productively.
“Today’s announcement facilitates the resumption of negotiations leading up to the July 21, 2025 deadline put forth at the recent G7 Leaders’ Summit in Kananaskis,” stated Canadian Prime Minister Mark Carney, as reported by NBC News.
Francois-Philippe Champagne, Canada’s Minister of Finance and National Revenue, added, “By rescinding the digital services tax, we can advance talks on a new economic and security relationship with the U.S., fostering job creation and prosperity for Canadians.”
During this development, President Trump also critiqued Europe for similar taxation efforts. He stated, “They have been unfair to us for far too long. Despite past leaderships being subject to their unfair treatment, they know I’m different. I understand this game better than they do.”
He further added, “We have the strategic advantage, more than they do, and if any penalties come into effect on U.S. companies, I want it administered by us, not them.”
It remains crucial for the public to be aware of such international policies and relations. Feel free to share this insight with your family and friends.
Wishing you all love and peace.
