Summary
United States President Donald Trump announced that the US will stop trade talks with Canada because of a new Canadian tax on digital services. This tax charges companies 3% on revenue from Canadian users if they earn over 20 million Canadian dollars in a year. The US also plans to announce new tariffs on Canadian goods soon.
Key Facts
- The US President decided to end trade discussions with Canada.
- The decision is in response to Canada’s new digital services tax.
- Canada’s tax charges a 3% levy on digital revenue above 20 million Canadian dollars from Canadian users.
- The tax took effect on June 28, 2024, and applies to revenue from 2022 onwards.
- Canadian businesses have expressed concern about increased costs due to the tax.
- US plans to announce tariffs on Canadian goods within the next week.
- Trade discussions between the US and Canada were ongoing but are now uncertain.
- The digital services tax is also part of the US trade talks with the European Union.
