Canadian Prime Minister issued blunt response after Trump accuses them of ‘blatant attack’
Just as tensions had eased, a new dispute erupted between close allies the U.S. and Canada. President Donald Trump sharply criticized Canada over a 3% digital services tax on major American tech companies like Amazon, Meta, and Google. The tax, retroactive to 2022, could cost U.S. firms up to $2 billion and applies to those earning over $14.6 million annually from Canadian users.
In a Truth Social post on June 27, Trump called the move a “blatant attack” and announced an immediate halt to all trade talks with Canada, threatening tariffs within seven days. He accused Canada of copying the EU and warned of serious economic consequences.
Canadian Prime Minister Mark Carney responded calmly, saying negotiations would continue in Canada’s best interest. But Trump doubled down, insisting Canada remove the tax, and warned the situation wouldn’t end well for them.
Following mounting pressure from U.S. lawmakers, a high-stakes call between Trump and Carney took place Sunday. That same night, Canada backed down, suspending the tax “in anticipation” of a new trade agreement. Talks are expected to resume ahead of the July 21, 2025, G7 deadline.
