Trade war escalates: Canada hikes duties as Trump halts negotiations
Last week, the finance minister said he would not delay the implementation of the digital services tax, which applies to any firm making more than $15 million from Canadian internet users. The three percent tax will strike at the heart of American companies like Amazon, Google, Meta, Uber and Airbnb. And because the tax is retroactive back to 2022, one tech lobbying group said American firms will soon have to pay up to $3 billion directly into Canada's treasury.
Canada has not ruled out further action to strike back at Trump for ending negotiations, with the government saying it 'remains prepared to take additional steps as needed.' How Canada's hike on US steel imports will affect the industry, which has been struggling for years, is yet to be seen. US Steel Corporation, once one of the most valuable companies in the world, just merged with Japan's Nippon Steel earlier this month after years of declining sales.
Canada is also hugely impacted by Trump's 50 percent tax on steel and aluminum imports, as the country is largest foreign supplier of those materials to the US. Canada's steel industry has laid off a staggering 1,000 workers since the first US tariffs in March, Reuters reported. It has also been impacted by the 25 percent duties Trump has levied on foreign-made vehicles and parts.
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