Kuala lumpur: President Donald Trump announced Friday that the United States (US) is ending trade discussions with Canada over the country’s digital services tax on technology companies, Anadolu Ajansi (AA) reported. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. 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,” Trump said on Truth Social.

According to BERNAMA News Agency, Trump said the US was informed that Canada is putting a digital services tax on American technology companies, “which is a direct and blatant attack on our Country.” He claimed that Canada is mimicking the European Union, which has implemented a similar tax and is currently in talks with the US regarding this issue.

Trump’s announcement adds a new complication to the already stalled trade negotiations between the two countries. The US and Canada have been locked in a tariff dis
pute for several months, despite some recent signs suggesting progress towards a potential agreement. The decision to end trade talks could further strain relations between the neighboring countries.