Trump Axes Trade Deals with Canada Over Digital Tax: A Potential Headache for Europe Too?
Negotiations on trade between the U.S. and Canada are temporarily suspended by President Trump. - U.S. President Trump halts trade negotiations with Canada.
Hey there! Let's dive into the latest trade drama going down between the US and Canada. It seems like it's getting a bit hairy, folks!
Trump has slammed the brakes on trade negotiations with Canada, citing Canada's digital tax as a direct attack on American tech companies. He claimed that Canada is simply mimicking the European Union, which is currently mulling over a similar digital tax for US companies in its ongoing row with Trump.
Canada already put its digital tax into place last year, and guess what? A hefty sum for US tech giants is due this coming Monday. Ouch!
Remember when Trump slapped hefty tariffs on several countries back in April? Well, their rates got slashed to a more manageable 10% for a 90-day stint. His objective? To persuade trading partners to make concessions during this span.
The deadline for the European Union was set for July 9, but it looks like Trump may be extending that. As for Canada and some other countries, theirs expired on July 8, but the talks are still up in the air. Trump's spokesperson, Karoline Leavitt, hinted at a possible extension of the deadline.
Trump's trade and tax policies have caused quite a stir in the stock market recently. Keep your eyes peeled for more updates as this situation unfolds!
[1] Source: Various news outlets (June 2025)
- Trade talks between the US and Canada have hit a roadblock due to disagreements over Canada's digital tax targeting foreign tech companies.
- The US intends to levy retaliatory tariffs on Canadian goods in the near future.
- Canada's digital tax follows a similar strategy employed by European countries, which has also caused tension with the US.
- While no specific updates about U.S.-EU trade negotiations on digital taxes are available, it appears that the conflict with Canada reflects a broader transatlantic issue.
The European Union, currently pondering over a digital tax for US companies, may find itself in a similar predicament as Canada, with potential retaliatory measures from the US due to this policy. The ongoing dispute between the US and Canada serves as a potential headache for the European Parliament in the realm of politics and general-news.
