Trump terminates tariff talks with Canada
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President Donald Trump said he's suspending trade talks with Canada over its plans to continue with its tax on technology firms and added he will let it know its fate on the matter in 'seven days.
Trump used fighting words in a Truth Social post attacking America's neighbor to the north, calling the technology tax 'a direct and blatant attack on our country.' The Canadian tax is scheduled to go into affect on Monday.
'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 in his post.
The digital services tax will apply to companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion bill due at the end of the month.
Trump has taken issue with digital services taxes throughout trade negotiations with other countries, calling them 'non-tariff trade barriers.' Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed on the country.
The president accused Ottawa of 'copying the European Union' with the 'egregious' tax. Dozens of countries face a July 9 deadline for Trump's higher tariffs to kick back into place, and have been engaged in negotiations with the US.
That group does not include Canada and Mexico. Trump imposed tariffs on America's neighbors earlier this year over fentanyl trafficking and migration and talks with them are being handled on a separate track.
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Rhyl Journal
13 minutes ago
- Rhyl Journal
Trump says he is terminating trade talks with Canada over tax on tech firms
Mr Trump, in a post on his social media network, 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 is set to go into effect on Monday. '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,' Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney said on Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation'. Mr Trump later said he expects that Canada will remove the tax. 'Economically we have such power over Canada. We'd rather not use it,' Mr Trump said in the Oval Office. 'It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said: 'It doesn't matter to me.' Mr Carney visited Mr Trump in May at the White House. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a two billion US dollar (£1.4 billion) bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Mr Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Mr Trump has imposed 50% tariffs on steel and aluminium as well as 25% tariffs on cars. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Mr Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Mr Trump's first term. Addressing reporters after a private meeting with Republican senators on Friday, Treasury Secretary Scott Bessent declined to comment on news that Mr Trump had ended trade talks with Canada. 'I was in the meeting,' Mr Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the US for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Mr Beland said. 'Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
Auto Car
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Everything you need to know about Scout, VW's new 4x4 brand
Terra pick-up and Traveler SUV will form the new Scout EV line-up Close It would be easy to dismiss Scout Motors as yet another retro revival, a way of trying to attach some emotion to new electric vehicles by sticking a nostalgic logo on the bonnet. Or even as just another new Volkswagen Group sub-brand designed to protect the conglomerate's share in the tough North American market. Dig beneath the surface, though, and Scout is far more interesting – even if it isn't a brand too well known to UK readers, and one that, for now, won't be sold here. For one thing, what's not to love about a retro-styled Jeep Wrangler rival? For another, the unusual set-up of Scout could have a significant influence on the future development processes of one of the world's biggest car firms. Scout Motors isn't technically a Volkswagen Group brand: it's an independent stand-alone company based in the US but owned by the VW Group. While Scott Keogh, boss of Volkswagen USA, also serves as CEO of Scout, it otherwise has its own staff and facilities. It is, in effect, a start-up created purely to make a new line of highly capable off-road EVs. 'The intent is to combine an American start-up – speed, innovation, ingenuity, adaptability – with the backing, scale and money of one of the world's leading manufacturers,' explains Ryan Decker, Scout's strategy boss (and employee number one). 'Nobody has really done that before.' But this is an electric vehicle start-up housed in some nostalgic wrapping. A quick history lesson may be in order first because, despite its name, the original International Scout was very much an American machine. It was developed by International Harvester, a longtime US manufacturer of agricultural and construction vehicles that in the early 1900s expanded into light trucks and pick-ups. 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I've taken the challenge to become a benchmark R&D organisation in the world, from a size and cost perspective. That is an interesting challenge appreciated by our sponsors as well. Of course, we are under observation.' There are already reports that both Volkswagen and Audi are interested in Scout's platform for their own off-roaders, along with hints that the new Scout factory could be used to produce models for other brands while the marque is ramped up. It's certainly an intriguing prospect, and Scout is worth watching because of how unusual it is as a start-up backed by a global car giant. 'You have a bunch of incumbent firms that are 100-plus years old with millions of loyal customers, but they also have a lot of complexity with lots of cars, powertrains and factories,' says Decker. 'Complexity is a challenge to growing a business. On the other hand, you have pure-play start-ups, who can react quicker, but they bring lots of questions. "Will they have success? Will they go bankrupt? Can they service your car? 'If you can take the scale offered by an incumbent and mix it with the enthusiasm of a start-up, think what a superpower that is.' Join our WhatsApp community and be the first to read about the latest news and reviews wowing the car world. Our community is the best, easiest and most direct place to tap into the minds of Autocar, and if you join you'll also be treated to unique WhatsApp content. You can leave at any time after joining - check our full privacy policy here.
Western Telegraph
14 minutes ago
- Western Telegraph
Trump says he is terminating trade talks with Canada over tax on tech firms
Mr Trump, in a post on his social media network, 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 is set to go into effect on Monday. '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,' Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney (Patrick Doyle/The Canadian Press via AP) Canadian Prime Minister Mark Carney said on Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation'. Mr Trump later said he expects that Canada will remove the tax. 'Economically we have such power over Canada. We'd rather not use it,' Mr Trump said in the Oval Office. 'It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said: 'It doesn't matter to me.' Mr Carney visited Mr Trump in May at the White House. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a two billion US dollar (£1.4 billion) bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Mr Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Mr Trump has imposed 50% tariffs on steel and aluminium as well as 25% tariffs on cars. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Mr Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Mr Trump's first term. Addressing reporters after a private meeting with Republican senators on Friday, Treasury Secretary Scott Bessent declined to comment on news that Mr Trump had ended trade talks with Canada. 'I was in the meeting,' Mr Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the US for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Mr Beland said. 'Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
