Trump Ends Canada Talks Over Tech Tax

Trump announced halting trade talks with Canada and threatened new tariffs in response to a digital tax targeting U.S. tech firms.

Content:

Trump
Elon Musk

Trump

Announces End of Trade Talks with Canada Over “Tech Tax” and Threatens New Tariffs

In a surprising escalation of economic tensions between Washington and Ottawa,
former U.S. President Donald Trump announced on Friday the termination of trade negotiations with Canada over a new digital tax the Canadian government plans to impose on major tech companies, including American firms.

Trump stated on Truth Social: “Canada has become a difficult trade partner.
This tax is a direct and outrageous attack on our country.” He added, “As of this moment,
we are ending all trade discussions with Canada,
and we will notify them within a week of the new tariffs they will have to pay to do business with the United States.”

Canada is expected to begin enforcing the tax starting Monday, further intensifying tensions,
especially since the U.S. considers Canada its second-largest trading partner after China.

Currently, Canadian imports are subject to a 25% U.S. tariff on goods not covered by the USMCA agreement,
while energy products are only taxed at 10%.
Canada is also one of the largest suppliers of steel and aluminum to the U.S.—two products that previously faced tariffs of up to 50% under Trump’s earlier administration.

Elon Musk

Slams Trump’s Tax Bill

On Saturday, American billionaire Elon Musk delivered sharp criticism of the latest version of the tax and spending bill proposed by Trump’s administration, which is currently under Senate review.
Musk described the bill as “insane and totally destructive.”

In a post on the platform “X,” Musk warned of the severe consequences of the proposed legislation,
stating: “The current version of the bill will destroy millions of American jobs and cause massive strategic harm to our country.”

He added: “The bill provides massive subsidies to outdated industries that have lost relevance,
while ignoring future industries that are supposed to drive economic growth in the coming decades.”

Musk’s remarks come weeks after a brief thaw in tensions between him and Trump following previous disagreements over economic policy,
reflecting ongoing friction between the tech mogul and the Republican leadership.

Trump Ends Canada Talks Over Tech Tax

Trump Ends Canada Talks Over Tech Tax

Related Topics