Trump cuts off trade talks with Canada over digital tax
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week.
The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm.
It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations.
The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy.
US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq.
Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others.
The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022.
Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with".
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said.
"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."
Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data.
Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days.
"The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement.
Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets.
The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.
"So we have countries approaching us with very good deals," Bessent said on Fox Business Network.
"We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said.
He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals.
But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates.
"I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke.
Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.
China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus.
It said China will approve export applications of controlled items in accordance with the law.
It did not mention rare earths.
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The Advertiser
30 minutes ago
- The Advertiser
Time to obliterate the off ramp for language's sake
This is a sample of The Echidna newsletter sent out each weekday morning. To sign up for FREE, go to Truth might be the first casualty in war but language falls soon after. For 12 long days we were assailed with an unfamiliar and ugly term, which spread faster than COVID's Omicron strain. As the world held its breath over the Israel-Iran missile exchange, "diplomatic off-ramp" became the jargon du jour. It was trotted out by experts and repeated ad nauseam by journalists. For some reason, it made my teeth hurt every time I heard it. What was wrong with, say, "peaceful compromise", "diplomatic solution" or "exit strategy"? In the language of diplomacy, off-ramp means finding a way out without losing face. "Obliterated" grabbed all the attention after the US dropped its big bombs on Iran's nuclear facilities. When I first heard it uttered by Donald Trump, like many others I thought, "Hang on. How do you know?" Curious, I poked my nose into the dictionary to see what the word actually meant. "To remove all signs of something, either by destroying or covering it completely," the Oxford Dictionary told me. Fordo was out of sight before it was bombed. What it looks like after the strike is anyone's guess. Yet here we were, days later, arguing the toss over President Trump's hyperbolic language. Weekend Fox News anchor turned Defence Secretary Pete Hegseth didn't help matters when defending Trump's imprecise language by saying the facility at Fordo has been "decimated". That suggests its capacity had been reduced by 10 per cent, a far cry from "obliterated". Confusion in the hunt for a linguistic off-ramp for the President. Of course, this isn't the first war in which language has suffered. During the Vietnam War, the term "collateral damage" came into military usage, deployed as a sanitised euphemism for "civilian casualties". "Collateral damage" became a popular buzzword during the 1991 Gulf War. And in 1999, it earned the dubious distinction of being named the German Un Word of the Year after it was used by NATO forces to describe civilian casualties in the Kosovo war. And we shouldn't forget "extraordinary rendition", which entered the language after September 11. In a sane world it would mean a memorable performance of, say, a piano concerto. Somehow it became code for plucking terrorism suspects off foreign streets and flying them to black sites where the use of "enhanced interrogation" (torture) wasn't illegal. There's a host of war-related crimes against the language. "Ethnic cleansing" - in vogue during the Balkans conflict of the 1990s - seeks to sanitise genocide. "Pacification", which in military terms means eliminating an enemy. "Strategic withdrawal", a polite way of saying retreat. "Peace with honour" - Richard Nixon's favourite, which really means defeat with the dishonourable distinction of abandoning your erstwhile ally. The argument of whether or not Iran's nuclear ambitions were derailed is unlikely to last long. That's because it's only a matter of time before Donald Trump deploys another weapon of crass distraction, most likely in the dead of night from his Truth Social platform. Meanwhile, can we please obliterate the off-ramp? HAVE YOUR SAY: What are the buzz phrases and euphemisms which annoy you the most? Does military and diplomatic jargon hide ugly truths that ought to be out in the open? Are you irritated by the misuse of the word "decimated"? Email us: echidna@ SHARE THE LOVE: If you enjoy The Echidna, forward it to a friend so they can sign up, too. IN CASE YOU MISSED IT: - The head of a man allegedly murdered and dismembered by his reality TV contestant partner is missing and police are calling on the public to help give his family "a peaceful outcome". - The online far-right extremist network Terrorgram has been listed as a terrorist organisation, with members facing decades in jail if convicted of an offence. - Carn, spew, and goon are some of the colloquialisms added to the Australian edition of the Oxford English Dictionary. THEY SAID IT: "Euphemism is a euphemism for lying." - Bobbie Gentry YOU SAID IT: Garry wants companies to sign up to his user agreement, rather than the other way around. "Having spent close to 50 minutes waiting to see my doctor recently, I was presented with the account for payment on departure," writes Brian. "Not having been amused with the wait, I suggested that my hourly rate at the time was about equal to the presented bill, so how about we call it quits and I get to see the doctor for nothing. Needless to say, I was kindly reminded that I needed to pay for my consultation." Deb writes: "Last year, after being on hold for two hours and 40 minutes trying to report an internet outage to Telstra, I decided to cancel my account. Although the recorded options list did not have a 'cancel' option, some helpful Google advice suggested just saying 'cancel' anyway, and it worked! I was put through to a human within 10 minutes. Funny how companies suddenly improve customer service when there's a threat of losing business." "Wonderful words once again," writes Sue. "Except you have made one mistake: you are not 'The User'. You are 'The Used'." This is a sample of The Echidna newsletter sent out each weekday morning. To sign up for FREE, go to Truth might be the first casualty in war but language falls soon after. For 12 long days we were assailed with an unfamiliar and ugly term, which spread faster than COVID's Omicron strain. As the world held its breath over the Israel-Iran missile exchange, "diplomatic off-ramp" became the jargon du jour. It was trotted out by experts and repeated ad nauseam by journalists. For some reason, it made my teeth hurt every time I heard it. What was wrong with, say, "peaceful compromise", "diplomatic solution" or "exit strategy"? In the language of diplomacy, off-ramp means finding a way out without losing face. "Obliterated" grabbed all the attention after the US dropped its big bombs on Iran's nuclear facilities. When I first heard it uttered by Donald Trump, like many others I thought, "Hang on. How do you know?" Curious, I poked my nose into the dictionary to see what the word actually meant. "To remove all signs of something, either by destroying or covering it completely," the Oxford Dictionary told me. Fordo was out of sight before it was bombed. What it looks like after the strike is anyone's guess. Yet here we were, days later, arguing the toss over President Trump's hyperbolic language. Weekend Fox News anchor turned Defence Secretary Pete Hegseth didn't help matters when defending Trump's imprecise language by saying the facility at Fordo has been "decimated". That suggests its capacity had been reduced by 10 per cent, a far cry from "obliterated". Confusion in the hunt for a linguistic off-ramp for the President. Of course, this isn't the first war in which language has suffered. During the Vietnam War, the term "collateral damage" came into military usage, deployed as a sanitised euphemism for "civilian casualties". "Collateral damage" became a popular buzzword during the 1991 Gulf War. And in 1999, it earned the dubious distinction of being named the German Un Word of the Year after it was used by NATO forces to describe civilian casualties in the Kosovo war. And we shouldn't forget "extraordinary rendition", which entered the language after September 11. In a sane world it would mean a memorable performance of, say, a piano concerto. Somehow it became code for plucking terrorism suspects off foreign streets and flying them to black sites where the use of "enhanced interrogation" (torture) wasn't illegal. There's a host of war-related crimes against the language. "Ethnic cleansing" - in vogue during the Balkans conflict of the 1990s - seeks to sanitise genocide. "Pacification", which in military terms means eliminating an enemy. "Strategic withdrawal", a polite way of saying retreat. "Peace with honour" - Richard Nixon's favourite, which really means defeat with the dishonourable distinction of abandoning your erstwhile ally. The argument of whether or not Iran's nuclear ambitions were derailed is unlikely to last long. That's because it's only a matter of time before Donald Trump deploys another weapon of crass distraction, most likely in the dead of night from his Truth Social platform. Meanwhile, can we please obliterate the off-ramp? HAVE YOUR SAY: What are the buzz phrases and euphemisms which annoy you the most? Does military and diplomatic jargon hide ugly truths that ought to be out in the open? Are you irritated by the misuse of the word "decimated"? Email us: echidna@ SHARE THE LOVE: If you enjoy The Echidna, forward it to a friend so they can sign up, too. IN CASE YOU MISSED IT: - The head of a man allegedly murdered and dismembered by his reality TV contestant partner is missing and police are calling on the public to help give his family "a peaceful outcome". - The online far-right extremist network Terrorgram has been listed as a terrorist organisation, with members facing decades in jail if convicted of an offence. - Carn, spew, and goon are some of the colloquialisms added to the Australian edition of the Oxford English Dictionary. THEY SAID IT: "Euphemism is a euphemism for lying." - Bobbie Gentry YOU SAID IT: Garry wants companies to sign up to his user agreement, rather than the other way around. "Having spent close to 50 minutes waiting to see my doctor recently, I was presented with the account for payment on departure," writes Brian. "Not having been amused with the wait, I suggested that my hourly rate at the time was about equal to the presented bill, so how about we call it quits and I get to see the doctor for nothing. Needless to say, I was kindly reminded that I needed to pay for my consultation." Deb writes: "Last year, after being on hold for two hours and 40 minutes trying to report an internet outage to Telstra, I decided to cancel my account. Although the recorded options list did not have a 'cancel' option, some helpful Google advice suggested just saying 'cancel' anyway, and it worked! I was put through to a human within 10 minutes. Funny how companies suddenly improve customer service when there's a threat of losing business." "Wonderful words once again," writes Sue. "Except you have made one mistake: you are not 'The User'. You are 'The Used'." This is a sample of The Echidna newsletter sent out each weekday morning. To sign up for FREE, go to Truth might be the first casualty in war but language falls soon after. For 12 long days we were assailed with an unfamiliar and ugly term, which spread faster than COVID's Omicron strain. As the world held its breath over the Israel-Iran missile exchange, "diplomatic off-ramp" became the jargon du jour. It was trotted out by experts and repeated ad nauseam by journalists. For some reason, it made my teeth hurt every time I heard it. What was wrong with, say, "peaceful compromise", "diplomatic solution" or "exit strategy"? In the language of diplomacy, off-ramp means finding a way out without losing face. "Obliterated" grabbed all the attention after the US dropped its big bombs on Iran's nuclear facilities. When I first heard it uttered by Donald Trump, like many others I thought, "Hang on. How do you know?" Curious, I poked my nose into the dictionary to see what the word actually meant. "To remove all signs of something, either by destroying or covering it completely," the Oxford Dictionary told me. Fordo was out of sight before it was bombed. What it looks like after the strike is anyone's guess. Yet here we were, days later, arguing the toss over President Trump's hyperbolic language. Weekend Fox News anchor turned Defence Secretary Pete Hegseth didn't help matters when defending Trump's imprecise language by saying the facility at Fordo has been "decimated". That suggests its capacity had been reduced by 10 per cent, a far cry from "obliterated". Confusion in the hunt for a linguistic off-ramp for the President. Of course, this isn't the first war in which language has suffered. During the Vietnam War, the term "collateral damage" came into military usage, deployed as a sanitised euphemism for "civilian casualties". "Collateral damage" became a popular buzzword during the 1991 Gulf War. And in 1999, it earned the dubious distinction of being named the German Un Word of the Year after it was used by NATO forces to describe civilian casualties in the Kosovo war. And we shouldn't forget "extraordinary rendition", which entered the language after September 11. In a sane world it would mean a memorable performance of, say, a piano concerto. Somehow it became code for plucking terrorism suspects off foreign streets and flying them to black sites where the use of "enhanced interrogation" (torture) wasn't illegal. There's a host of war-related crimes against the language. "Ethnic cleansing" - in vogue during the Balkans conflict of the 1990s - seeks to sanitise genocide. "Pacification", which in military terms means eliminating an enemy. "Strategic withdrawal", a polite way of saying retreat. "Peace with honour" - Richard Nixon's favourite, which really means defeat with the dishonourable distinction of abandoning your erstwhile ally. The argument of whether or not Iran's nuclear ambitions were derailed is unlikely to last long. That's because it's only a matter of time before Donald Trump deploys another weapon of crass distraction, most likely in the dead of night from his Truth Social platform. Meanwhile, can we please obliterate the off-ramp? HAVE YOUR SAY: What are the buzz phrases and euphemisms which annoy you the most? Does military and diplomatic jargon hide ugly truths that ought to be out in the open? Are you irritated by the misuse of the word "decimated"? Email us: echidna@ SHARE THE LOVE: If you enjoy The Echidna, forward it to a friend so they can sign up, too. IN CASE YOU MISSED IT: - The head of a man allegedly murdered and dismembered by his reality TV contestant partner is missing and police are calling on the public to help give his family "a peaceful outcome". - The online far-right extremist network Terrorgram has been listed as a terrorist organisation, with members facing decades in jail if convicted of an offence. - Carn, spew, and goon are some of the colloquialisms added to the Australian edition of the Oxford English Dictionary. THEY SAID IT: "Euphemism is a euphemism for lying." - Bobbie Gentry YOU SAID IT: Garry wants companies to sign up to his user agreement, rather than the other way around. "Having spent close to 50 minutes waiting to see my doctor recently, I was presented with the account for payment on departure," writes Brian. "Not having been amused with the wait, I suggested that my hourly rate at the time was about equal to the presented bill, so how about we call it quits and I get to see the doctor for nothing. Needless to say, I was kindly reminded that I needed to pay for my consultation." Deb writes: "Last year, after being on hold for two hours and 40 minutes trying to report an internet outage to Telstra, I decided to cancel my account. Although the recorded options list did not have a 'cancel' option, some helpful Google advice suggested just saying 'cancel' anyway, and it worked! I was put through to a human within 10 minutes. Funny how companies suddenly improve customer service when there's a threat of losing business." "Wonderful words once again," writes Sue. "Except you have made one mistake: you are not 'The User'. You are 'The Used'." This is a sample of The Echidna newsletter sent out each weekday morning. To sign up for FREE, go to Truth might be the first casualty in war but language falls soon after. For 12 long days we were assailed with an unfamiliar and ugly term, which spread faster than COVID's Omicron strain. As the world held its breath over the Israel-Iran missile exchange, "diplomatic off-ramp" became the jargon du jour. It was trotted out by experts and repeated ad nauseam by journalists. For some reason, it made my teeth hurt every time I heard it. What was wrong with, say, "peaceful compromise", "diplomatic solution" or "exit strategy"? In the language of diplomacy, off-ramp means finding a way out without losing face. "Obliterated" grabbed all the attention after the US dropped its big bombs on Iran's nuclear facilities. When I first heard it uttered by Donald Trump, like many others I thought, "Hang on. How do you know?" Curious, I poked my nose into the dictionary to see what the word actually meant. "To remove all signs of something, either by destroying or covering it completely," the Oxford Dictionary told me. Fordo was out of sight before it was bombed. What it looks like after the strike is anyone's guess. Yet here we were, days later, arguing the toss over President Trump's hyperbolic language. Weekend Fox News anchor turned Defence Secretary Pete Hegseth didn't help matters when defending Trump's imprecise language by saying the facility at Fordo has been "decimated". That suggests its capacity had been reduced by 10 per cent, a far cry from "obliterated". Confusion in the hunt for a linguistic off-ramp for the President. Of course, this isn't the first war in which language has suffered. During the Vietnam War, the term "collateral damage" came into military usage, deployed as a sanitised euphemism for "civilian casualties". "Collateral damage" became a popular buzzword during the 1991 Gulf War. And in 1999, it earned the dubious distinction of being named the German Un Word of the Year after it was used by NATO forces to describe civilian casualties in the Kosovo war. And we shouldn't forget "extraordinary rendition", which entered the language after September 11. In a sane world it would mean a memorable performance of, say, a piano concerto. Somehow it became code for plucking terrorism suspects off foreign streets and flying them to black sites where the use of "enhanced interrogation" (torture) wasn't illegal. There's a host of war-related crimes against the language. "Ethnic cleansing" - in vogue during the Balkans conflict of the 1990s - seeks to sanitise genocide. "Pacification", which in military terms means eliminating an enemy. "Strategic withdrawal", a polite way of saying retreat. "Peace with honour" - Richard Nixon's favourite, which really means defeat with the dishonourable distinction of abandoning your erstwhile ally. The argument of whether or not Iran's nuclear ambitions were derailed is unlikely to last long. That's because it's only a matter of time before Donald Trump deploys another weapon of crass distraction, most likely in the dead of night from his Truth Social platform. Meanwhile, can we please obliterate the off-ramp? HAVE YOUR SAY: What are the buzz phrases and euphemisms which annoy you the most? Does military and diplomatic jargon hide ugly truths that ought to be out in the open? Are you irritated by the misuse of the word "decimated"? Email us: echidna@ SHARE THE LOVE: If you enjoy The Echidna, forward it to a friend so they can sign up, too. IN CASE YOU MISSED IT: - The head of a man allegedly murdered and dismembered by his reality TV contestant partner is missing and police are calling on the public to help give his family "a peaceful outcome". - The online far-right extremist network Terrorgram has been listed as a terrorist organisation, with members facing decades in jail if convicted of an offence. - Carn, spew, and goon are some of the colloquialisms added to the Australian edition of the Oxford English Dictionary. THEY SAID IT: "Euphemism is a euphemism for lying." - Bobbie Gentry YOU SAID IT: Garry wants companies to sign up to his user agreement, rather than the other way around. "Having spent close to 50 minutes waiting to see my doctor recently, I was presented with the account for payment on departure," writes Brian. "Not having been amused with the wait, I suggested that my hourly rate at the time was about equal to the presented bill, so how about we call it quits and I get to see the doctor for nothing. Needless to say, I was kindly reminded that I needed to pay for my consultation." Deb writes: "Last year, after being on hold for two hours and 40 minutes trying to report an internet outage to Telstra, I decided to cancel my account. Although the recorded options list did not have a 'cancel' option, some helpful Google advice suggested just saying 'cancel' anyway, and it worked! I was put through to a human within 10 minutes. Funny how companies suddenly improve customer service when there's a threat of losing business." "Wonderful words once again," writes Sue. "Except you have made one mistake: you are not 'The User'. You are 'The Used'."
Perth Now
36 minutes ago
- Perth Now
Canada trade talks with US resume
Canadian Prime Minister Mark Carney says trade talks with US have resumed after Canada rescinded its plan to tax US technology firms. US President Donald Trump abruptly cut off trade talks with Canada on Friday over its tax targeting US technology firms, saying that it was a "blatant attack" and that he would set a new tariff rate on Canadian goods within the next week. The tax was three per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Carney's office said Carney and Trump have agreed to resume negotiations. "Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis," Carney said in a statement. Carney visited Trump in May at the White House, where he was polite but firm. Trump travelled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks. Canada is the second-largest US trading partner after Mexico and the largest buyer of US exports. It bought $US349.4 billion ($A534.7 billion) of US goods last year and exported $US412.7 billion ($A631.6 billion) to the US, according to US Census Bureau data. The Canadian government says "in anticipation" of a trade deal "Canada would rescind" the Digital Serves Tax. Trump, in a post on his social media network last Friday, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax was set to go into effect on Monday. The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a three per cent levy on revenue from Canadian users. It would have applied retroactively, leaving US companies with a $US2 billion ($A3.1 billion) US bill due at the end of the month. Trump's announcement on Friday was the latest swerve in the trade war he's launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president poking at the nation's northern neighbour and repeatedly suggesting it would be absorbed as a US state. with reuters
Perth Now
40 minutes ago
- Perth Now
Australian shares edge higher at end of financial year
The Australian share market is up slightly - and set to round out the 2025 financial year with a respectable double-digit gain. Just before noon AEST on Monday, the benchmark S&P/ASX200 index was up 18.5 points, or 0.22 per cent, to 7,532.7, while the broader All Ordinaries gained 18.6 points, or 0.21 per cent, to 8,762.2. With a few hours of trading left in 2024/25, the ASX200 was up 10.1 per cent since July 1, 2024 - or just under 14 per cent on a gross return basis, including dividends. The ASX200 was also up 1.18 per cent for the month, 8.81 per cent for the June quarter and 4.6 per cent so far in 2025. Pepperstone head of research Chris Weston said while not everything went the bull's way last week, the momentum and trends seen in risk markets portrayed an almost nirvana environment in which to operate. The S&P500 printed its fourth all-time high on Friday as did the Nasdaq 100 amid a rapid reduction to geopolitical risk premiums, talk of 10 imminent trade deals with the United States and a dovish tilt by various Federal Reserve officials. At midday, eight of the ASX's 11 sectors were higher, with energy and materials lower and consumer staples flat. The consumer discretionary and technology sectors were the biggest winners, both rising 0.9 per cent. JB Hi-Fi had climbed 1.9 per cent to an all-time high of $110.66, Guzman Y Gomez was up 2.9 per cent to $28.285 and data centre operator Nextdc had added 2.7 per cent to $14.575. The big four banks were mixed, with Westpac up 0.6 per cent and NAB adding 0.8 per cent, while ANZ was flat and CBA had edged 0.1 per cent lower. The material sector was down 1.2 per cent after a strong performance on Friday, with BHP dropping 2.3 per cent, Fortescue declining 1.9 per cent and Rio Tinto dipping 2.2 per cent. The Star was up 1.7 per cent despite its Hong Kong joint venture partners threatening to walk away from a deal to purchase Star's half-stake in Brisbane's Wharf casino and hotel complex. The Australian dollar was buying 65.35 US cents, from 65.50 US cents on Friday.
