World trade: Trump announces trade talks with Canada – tariffs threaten

US President Donald Trump announces “all” trade talks with Canada and threatens the neighboring country with new tariffs. The country should be informed of how high the taxes will be on imports from Canada to the USA in the future, as Trump wrote on his Truth Truth Social.

As the reason for the demolition of the trade talks, Trump cited an introduction of a digital tax planned by Canada to business of American companies. This is “a direct and unabashed attack on our country,” continued Trump. Canada probably copy the European Union, which did that too. There are ongoing discussions with the EU, he continued.

The Canadian government had introduced a new digital tax (DST) a year ago, i.e. during the term of office of US President Joe Biden. According to the information, the DST obliges large domestic and foreign companies to pay a three percent tax on certain sales, which they achieve by online users in Canada. With the procedure, Canada wants to ensure a taxation of digital companies where they make profit – in this case in the American neighboring country.

The United States is by far the most important trading partner for Canada.