Trump says he's ending trade talks with Canada over its 'egregious Tax' on technology firms
WASHINGTON (AP) — President Donald Trump said Friday that he's suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called 'a direct and blatant attack on our country.'
Trump, in a post on his social media network, said Canada had just informed the U.S. 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 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.
Canadian Prime Minister Mark Carney said his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation.'
Trump's announcement 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 U.S. president poking at the nation's northern neighbor and repeatedly suggesting it would be absorbed as a U.S. state.
Carney visited Trump in May at the White House, where he was polite but firm with Trump. Trump last week traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the U.S. 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 U.S. companies with a $2 billion U.S. bill due at the end of the month.
The Republican president earlier told reporters that the U.S. was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them.
Trump has imposed 50% tariffs on steel and aluminum as well as 25% tariffs on autos. 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 set by him would expire.
Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump's first term.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
20 minutes ago
- Axios
Senate rejects limiting Trump's military authority on Iran
The Senate on Friday rejected a resolution that would have blocked U.S. military action in Iran without authorization from Congress. Why it matters: The vote is a win for the White House and a sign of how much leeway Republicans and some Democrats are willing to give President Trump to take unilateral military action against Tehran. The resolution, offered by Sen. Tim Kaine (D-Va.), was rejected 47-53. One Democrat — John Fetterman (Pa.) — voted "no," and one Republican — Rand Paul (Ky.) — voted "yes." Many Democrats, and even some Republicans, have argued that the White House was required to seek consent from Congress before green-lighting last weekend's strike. But the White House received backup from Republican leadership on the Hill, with Speaker Mike Johnson (R-La.) going so far as to suggest the War Powers Act is unconstitutional. The big picture: The Iran strike reignited an old tug-of-war between the executive branch and Congress over war powers. Trump twice vetoed resolutions related to the War Powers Act in his first term, including one aimed at curtailing his powers to strike Iran. Congress also confronted the question when President Obama authorized air strikes on Libya in 2011. Zoom in: A pair of briefings in the Senate and House on Thursday and Friday did little to satisfy Democrats. House Democrats left their Friday morning largely grumbling at what they described as "propaganda" and a " waste of time." The sentiment was similar among Democratic senators following their Thursday afternoon session.
Boston Globe
22 minutes ago
- Boston Globe
Trump administration appeals order protecting Harvard's foreign students
International students make up more than 27 percent of Harvard's total enrollment. Advertisement Harvard argued that Trump was unlawfully using his power to 'pursue a government vendetta' against the school. It has two lawsuits pending against the administration; one over foreign students and the other focused on billions of dollars in government-funded research cuts. Burroughs, who is presiding over the lawsuit related to foreign students filed in May, issued another preliminary injunction on June 20 halting the administration's effort to prevent Harvard from enrolling foreign students. Yet, later that day, the president The president's announcement came after the Trump administration announced in May it was immediately revoking Harvard's ability to enroll foreign students, and ordered those already attending the school to either transfer or leave the country. Advertisement Secretary of Homeland Security Kristi Noem said the punishment was in response to Harvard's failure to provide information the administration had demanded on April 16 about the criminality and misconduct of foreign students on its campus. However, in its lawsuit, Harvard called it 'the latest act by the government in clear retaliation for Harvard exercising its First Amendment rights to reject the government's demands to control Harvard's governance, curriculum, and the 'ideology' of its faculty and students.' The administration has been locked in an escalating legal and financial battle with Harvard since April when the elite school rejected a list of demands to address what the administration says is a longstanding culture of antisemitism, racial discrimination, and political bias at the school. Harvard's suit alleges that the administration demanded an unprecedented amount of information related to international students, then claimed Harvard's response was 'insufficient,' without explaining why or citing any regulation that Harvard had failed to comply with. Harvard alleges that the revocation of its ability to enroll international students is 'a blatant violation' of its First Amendment and Due Process rights and argues it would have an immediate and devastating impact on the university Trump has accused Harvard and other elite universities of fomenting anti-American ideology and failing to Shelley Murphy can be reached at
Newsweek
23 minutes ago
- Newsweek
Harvard Finds International Student Lifeline Amid Trump Visa Showdown
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Harvard Kennedy School of Government (HKS) has brokered a deal with the University of Toronto's Munk School of Global Affairs & Public Policy to accept foreign students should the Trump administration succeed in blocking Harvard from enrolling them. In remarks provided to Newsweek via email, HKS Dean Jeremy Weinstein thanked the Munk School—"and other partners"—for their help "to ensure that we can continue to provide all HKS students with the excellent education they deserve. In similar remarks, Munk School Dean Janice Stein said that the agreement arose out of "exceptional times" and that the school "looks forward to providing shared academic and co-curricular experiences for students from both our schools." Why It Matters President Donald Trump targeted Harvard University and other higher education institutions, aiming to limit pro-Palestinian activism and end diversity, equity, and inclusion (DEI) practices. While Columbia University in New York City agreed to work with the administration, Harvard has refused to bow to its demands. In response, Trump canceled or froze billions of dollars in grants and contracts and attempted to strip Harvard of its tax-exempt status. The president then tried to block the school from enrolling foreign students, but this past week, U.S. District Judge Allison Burroughs issued a preliminary injunction that extends a temporary order she had issued earlier this month that halted Trump's June 4 proclamation blocking foreign students from attending Harvard. University spokesperson Jason Newton said in a statement to Newsweek that the order will "continue to allow Harvard to host international students and scholars while this case moves forward." Signage for the Harvard Kennedy School of Government is pictured on July 8, 2020, in Cambridge, Massachusetts. Signage for the Harvard Kennedy School of Government is pictured on July 8, 2020, in Cambridge, To Know Weinstein in a letter to students on Friday announced contingency plans in the event that the Trump administration ultimately wins its case and is able to block international students from enrolling at Harvard and it schools. Among those plans are the HKS Global program for new and returning students, in which they could take online classes and attend three intensive, in-person "convenings" in cities around the world led by HKS faculty. The other option is for returning students to attend the HKS at Munk School program, which would include a mix of online and in-person lessons taught by HKS faculty and instructors from the University of Toronto. "We are announcing these contingency plans now to alleviate the uncertainty many students feel, but we will not officially launch these programs unless there is sufficient demand from students who are unable to come to the United States due to visa or entry restrictions," Weinstein wrote. "If these programs become necessary, I am fully confident that we will provide a world-class HKS experience for any student who participates in them." According to information available on the HKS website, the goal of this program is to ensure students still receive their Harvard diplomas, which can only happen if students take "a certain percentage of their courses exclusively with HKS faculty"—excluding the possibility of students bypassing the issue by using the "visiting students" program at Munk. HKS currently enrolls students from over 100 countries, comprising an average of 52 percent of classes, according to a school spokesperson. In a YouGov poll surveying 3,717 American adults on May 23, 57 percent found it unacceptable for the federal government to block a university's ability to enroll international students, while the remainder of those surveyed were split evenly between finding it acceptable or saying they were unsure. What People Are Saying Weinstein, in comments shared with Newsweek: "At Harvard Kennedy School, we bring together the world's best students –– from the United States and across the world –– and train them to tackle the world's biggest problems. With these contingency plans in place, HKS will be able to continue to provide a world-class public policy education to all of our students, even if they cannot make it to our campus this year. We are deeply grateful for the support of the Munk School and other partners, who are helping to ensure that we can continue to provide all HKS students with the excellent education they deserve." Stein, in comments shared with Newsweek: "These are exceptional times. If Harvard Kennedy School international students are not able to complete their studies in Cambridge. Mass., the Munk School of Global Affairs & Public Policy looks forward to providing shared academic and co-curricular experiences for students from both our schools." Tricia McLaughlin, Department of Homeland Security assistant secretary, said in a previous statement to Newsweek: "It is a privilege, not a right, for universities to enroll foreign students and benefit from their higher tuition payments to help pad their multibillion-dollar endowments. The Trump administration is committed to restoring common sense to our student visa system; no lawsuit, this or any other, is going to change that. We have the law, the facts, and common sense on our side." Trump wrote on Truth Social last week: "Many people have been asking what is going on with Harvard University and their largescale improprieties that we have been addressing, looking for a solution. We have been working closely with Harvard, and it is very possible that a Deal will be announced over the next week or so." He added: "They have acted extremely appropriately during these negotiations, and appear to be committed to doing what is right. If a Settlement is made on the basis that is currently being discussed, it will be 'mindbogglingly' HISTORIC, and very good for our Country. Thank you for your attention to this matter!" What Happens Next The case will continue to work its way up to the Supreme Court, where Harvard University and the Trump administration will seek a final resolution. Should the administration succeed, the university will have these programs ready to launch. As Trump indicated in his Truth Social post, the university and administration may reach a deal before the case is settled in court.
