On June 27, President Donald Trump claimed that he is immediately cutting off trade negotiations with Canada in response to the Liberal government’s decision to enforce the 3% digital services tax, targeting US tech companies. The decision comes amid ongoing talks between the two countries to reach a trade deal by mid-July.
Trump has also stated that he will let Canadians know what new tariffs they will be facing within seven days. Many analysts argue that Trump’s recent social media tariff threats are just part of a tactic to leverage a better deal for the US, as evident in him talking down his initial tariff increase n the European Union.
Prime Minister Carney has stated that his government is still committed to negotiating with their US counterparts.