On Friday afternoon, President Trump, in his words, "terminat[ed]" the current trade talks the U.S. and Canada have been having on tariffs, effective immediately."
Remarkably it was just 11 days ago when the president was forced by his duties as America's commander in chief to cut short his attendance at the G7 summit in Canada, readers might recall. Although, the U.S. contingent remained behind, and chalked up a trade deal with one of our allies, the United Kingdom.
READ MORE: Breaking: Trump Heading Back From G7 Early, Convening National Security Council (Updated)
On the Other Hand, Trump Did Strike a Deal With the UK While in Canada
Now, Canadian officials have acted in a way that the Trump administration had decided to react on in return. As I said, on Friday Trump made the announcement of the end of negotiations through a post on his Truth Social account.
"We have just been informed that Canada, a very difficult Country to trade with, including the fact that they have charged our farmers as much as 400% Tariffs, for years, on dairy products, has just announced that they are putting a Digital Services Tax on our American technology companies, which is a direct and blatant attack on our country," Pres. Trump said. "They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also."
"Based on this egregious Tax, we are hereby terminating ALL discussions on trade with Canada, effective immediately," he contnued. "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. Thank you for your attention to this matter!"
So far, here's what we know about Canada's DST:
Canada's Digital Services Tax (DST), effective retroactively from January 1, 2022, imposes a 3% tax on large companies :
📍Social Media Services platforms like Meta, X (Premium), LinkedIn, or TikTok.
📍Online Marketplace Services platforms like Etsy, eBay, Amazon Marketplace, Uber, or Airbnb.
📍Online Advertising Services from targeted ads on Google Ads, Meta (Facebook/Instagram), YouTube, or X.
📍User Data Sales**: Revenue from data collected by companies like Meta, Google, or Amazon.
This is a breaking story. RedState will provide updates as more information becomes available.
UPDATE: The president commented on the move on tariff talks during a press gaggle in the Oval Office, calling out Canadian leaders as "foolish" to copy Europeans' tax model on tech.
Watch:
.@POTUS on shutting down trade talks with Canada after they implemented a digital services tax on American tech companies:
— Rapid Response 47 (@RapidResponse47) June 27, 2025
"We have all the cards... Economically, we have such power over Canada. I'd rather not use it." pic.twitter.com/pcREkL0Jd8
In addition, Meta's chief global affairs officer, Joel Kaplan expressed his thanks to the Trump administration in an X post.
"Thank you, President Trump, for standing up for American tech companies in the face of unprecedented attacks from other governments," he wrote. "We appreciate your support and recognition of the importance of American business and innovation."
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