Upperhill News

The United States President Donald Trump,  in a new move has expressed his decision to end  all trade discussions with Canada as a way of hitting back at Ottawa for slapping a tax on web giants.

Trump said the taxes must be removed before the resumption of negotiations with Canada on trade-related issues.

Canada and the US have been engaging in conversations to get Trump lift his punishing tariffs on Canadian goods, levies that have already resulted in major economic dislocations, job losses and a drop in southbound exports.

The US President and Canadian Prime Minister Mark Carney, last weet at the G7 Summit held in Alberta, concluded to reach some agreements  on the trade dispute within the space of 30 days.

Speaking in the Oval Office on Friday afternoon, Trump noted that the US has “such power over Canada,” and that he is displeased the country is following a taxation strategy similar to Europe’s.

In his words: “It’s not going to work out well for Canada. They were foolish to do it.”

He mentioned his plan to impose the DST, which was passed into law last year with a delayed application.

“We’re going to stop all negotiations with Canada right now until they straighten out their act,” Trump said, just as he added that the only solution on the part of Canada for Ottawa to remove the tax.

Assuring that Canada will accede to his request, the US President pointed out that, “They do most of their business with us. When you have that circumstance, you treat people better.”

Earlier, Trump posted on social media that he may impose some blanket tariffs on Canadian goods as retribution for the DST, which will primarily hit U.S. firms since it targets only the biggest earners.

Speaking with news men, Prime Minister Carney said his country will continue to conduct complex negotiations in the best interest of Canadians.

“We’ll continue to conduct these complex negotiations in the best interest of Canadians,” Carney said. He did not address a reporter’s question about whether his government is prepared to drop the DST — something the Business Council of Canada is calling on Ottawa to do in exchange for US tariff relief,” he said.

The DST, which is set to take effect on June 30, will have US companies like Amazon, Google, Meta, Uber, and Airbnb pay a three per cent levy on revenue from Canadian users. The policy will apply retroactively, leaving US companies with a $2-billion US bill due at the end of the month.

These global digital firms are often able to skirt paying taxes in the countries where they operate, and the last Liberal government pitched the DST as a way to bring the tax code up to date and capture revenues earned in Canada by firms located abroad.