“Direct and obvious blow”: Trump puts an end to commercial negotiations with Canada

US President Donald Trump announced on Friday ending commercial negotiations with his Canadian neighbor, judging that the Ottawa tax targeting the digital giants is a “direct and obvious blow” carried against the United States.

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“Because of this scandalous tax. For example, we put an end to all trade discussions with Canada, with immediate effect,” wrote the head of state in Truth Social.

“We will tell Canada within seven days the customs duties they will have to pay to do business with the United States of America. ” added Trump.

Canada has set up a tax on digital services last year. which targets American digital giants Google, Apple, Meta (Facebook), Amazon and Microsoft.

They are accused of taking advantage of the intangible nature “direct obvious blow”: trump puts new of their activity to escape tax.

This tax on digital services (TSN) should start to be perceived by Ottawa on June 30.

It targets technology giants that generate annual global turnover greater than $ 1.1 billion Canadian, and who earn annual revenue over 20 million Canadian dollars in Canada.

Prime Minister Carney’s office reacted to Trump’s announcement by declaring that “the Canadian government will continue to participate in these complex negotiations with the United States in the primary interest of Canadian workers. businesses.”

The American president. who also criticizes the European Union (EU) for having implemented such a tax, makes it a lever for negotiation in commercial discussions with the European block.

The threat of new customs duties on Canadian products imported into the United States has been involved while Canada has been submitted. since the return to power of Donald Trump in January, to a special regime.

It is “direct obvious blow”: trump puts new struck by part of the new customs duties. but some of its exports are in a way always protected by its free trade agreement (ACEUM or USMCA in English) with the United States and Mexico.

According to the governments implementing them. taxes on digital services are provisional, pending the culmination of international negotiations on the taxation of these multinationals.