
Trump ends trade deals with Canada after services tax

UPDATED: After failing to advance stalled trade negotiations with the United States, Canada ditched its digital services tax targeting U.S. technology firms late on Sunday (Monday AEST). The Canadian Prime Minister Mark Carney and U.S. President Donald Trump will resume trade negotiations by 21 July, Canada's finance ministry said. Earlier, Trump declared that he had ended trade talks with Canada following the implementation of their digital services tax. In a post to Truth Social, Trump criticised the digital service tax and announced that extra tariffs will be imposed on Canada, claiming they are “a very difficult country to trade with”. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he said. “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.” Canada’s Digital Service Tax (DSTA) came into force in June last year, and is a levy on tech revenues generated by Canadian users, even if the providers do not have a physical presence in the country. The first payments of the levy were due on Monday, 30 June 2025 and were meant to be retroactive to revenues







