Latest news with #CanadaUSRelations
Irish Times
5 hours ago
- Business
- Irish Times
Donald Trump says he is terminating US-Canada trade talks over ‘egregious' tax on tech firms
US president Donald Trump said he was suspending trade talks with Canada over its plans to continue with a tax on technology firms, which he called 'a direct and blatant attack on our country'. Mr Trump, in a post on his Truth Social platform, said Canada had just informed the US 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. His announcement was the latest move in the trade war he has launched since taking office for a second term in January. Relations with Canada have been turbulent since then, with Mr Trump repeatedly suggesting its neighbour would be absorbed as a US state. READ MORE Canadian prime minister Mark Carney. Photograph: 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,' he added. Mr Trump later said he expected that Canada would 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, and predicted it would, but added: 'It doesn't matter to me.' Mr Carney visited the White House in May. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said the two countries had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon , Google and Meta with a 3 per cent levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a $2 billion (€1.7 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,' said Matt Schruers, chief executive of the Computer & Communications Industry Association. Talks have been taking place on easing a series of steep tariffs Mr Trump imposed on goods coming from Canada. He on Friday told reporters the US was 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 per cent tariffs on steel and aluminium as well as a 25 per cent levy on cars. He is also charging a 10 per cent tax on imports from most countries, though he could raise rates on July 9th, when the 90-day negotiating window he set expires. Canada and Mexico face separate tariffs of as much as 25 per cent 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, US 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 per cent of US crude oil imports are from Canada, and 85 per cent 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 per cent of Canada's exports go to the US. - AP
Yahoo
7 hours ago
- Business
- Yahoo
Trump says he is terminating trade talks with Canada over tax on tech firms
US President Donald Trump said he is 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'. 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.'
BreakingNews.ie
7 hours ago
- Business
- BreakingNews.ie
Trump says he is terminating trade talks with Canada over tax on tech firms
US President Donald Trump said he is 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'. 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. Advertisement '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'. Advertisement 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. Advertisement 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. Advertisement 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. Advertisement 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.'
Asharq Al-Awsat
8 hours ago
- Business
- Asharq Al-Awsat
Trump Says he's Terminating Trade Talks with Canada over Tax on Tech Firms
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 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 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. 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 US president poking at the nation's northern neighbor and repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney said Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation.' Trump later said he expects that Canada will remove the tax, The Associated Press reported. 'Economically we have such power over Canada. We'd rather not use it,' 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.' Carney visited Trump in May at the White House, where he was polite but firm. Trump last week traveled 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. 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 $2 billion US bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on U.S. 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 Trump imposed on goods from America's neighbor. 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. 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 he set 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 US-Mexico-Canada Agreement signed during Trump's first term. Addressing reporters after a private meeting with Republican senators Friday, Treasury Secretary Scott Bessent declined to comment on news that Trump had ended trade talks with Canada. 'I was in the meeting,' 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, aluminum 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 United States 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,' 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.'
Bloomberg
13 hours ago
- Business
- Bloomberg
Trump Turns on ‘Nice' Carney With Canadian Tech Tax Ultimatum
It had all been going so well. Since Mark Carney replaced Justin Trudeau as prime minister, Canada's relationship with the White House appeared to be functional again, on the mend after President Donald Trump's tariffs and overtures about making it the '51st state.'
