Trump announces the immediate suspension of trade negotiations between the US and Canada about the tax on digital services.

 President Donald Trump of the United States declared that trade talks with Canada will be halted immediately, citing Canada's proposed Digital Services Tax (DST) on major internet firms.

Trump called the levy a "direct and blatant attack" on American tech companies in a message that was shared on Truth Social. Additionally, he cautioned that Canada would be informed of the tariff rates it would be subject to on goods entering the U.S. market by the United States within seven days.

The purpose of Canada's Digital Services Tax is to impose a 3% tax on the money that huge global digital corporations—including well-known American companies like Google, Amazon, Meta, Apple, and Uber—earn in Canada. According to Canadian authorities, the measure was designed to deal with digital business taxation while more extensive international tax negotiations were ongoing.

Trade tensions between the two neighboring countries were momentarily increased by the statement. Days later, though, the Canadian government declared that it would remove the Digital Services Tax in order to allow for new trade talks. Both nations decided to resume negotiations in order to reach a more comprehensive trade and economic accord after that ruling.

With hundreds of billions of dollars in goods and services traded every year, the United States and Canada have one of the biggest commercial partnerships in the world. Therefore, companies, investors, and officials on both sides of the border keep a careful eye on developments in bilateral trade negotiations.

Despite the short-term disagreement over digital taxation, officials from both governments have stated that they are still dedicated to reaching a full trade agreement.