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Trump halts trade talks with Canada over digital tax, warns of new tariffs

US President Donald Trump has suspended trade talks with Canada after Ottawa confirmed it would proceed with a digital services tax on tech firms. Calling the move a “blatant attack,” Trump announced that Canada will face new tariffs soon. The decision escalates tensions just weeks after both countries set a deadline for trade negotiations.

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Donald Trump. Pic/AP

Donald Trump. Pic/AP

President Donald Trump said Friday that he`s suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called `a direct and blatant attack on our country.`

Trump, in a post on his social media network, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax is set to go into effect Monday.

`Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. 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,` Trump said in his post.

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