Trump Halts Trade Talks with Canada
Sourse: dairynews.today
President Trump ends trade negotiations with Canada citing a 'digital tax' conflict, warning of potential tariffs.
In a significant move, President Donald Trump has announced the immediate cessation of all trade negotiations with Canada. This decision comes as a reaction to Canada's new 3% digital services tax, which Trump referred to as 'a direct and blatant attack' against the United States. The announcement, made on Trump's social media platform Truth Social, not only halts current discussions but also threatens the imposition of tariffs on Canadian products within seven days.
This development marks an escalation in protectionist policies during Trump's second term. The timing is particularly notable, coinciding with the imminent expiration of the temporary tariff pause, known as Liberalization Day. Treasury Secretary Scott Bessent noted the possibility of extending this pause until Labor Day. The market reaction was swift, with the Canadian dollar dropping by 0.7%, and financial markets tempering earlier gains.
Canada, while emphasizing its status as the United States' second-largest trading partner, remains open to negotiations even as it prepares for potential countermeasures. The current situation is part of a longstanding trade conflict that began in March 2025, featuring prior 25% tariffs on Canadian goods and ongoing retaliations, adding to the global supply chain uncertainties. This episode further exemplifies the enduring trade tensions touched off earlier in the year and highlights the continuing challenges in U.S.-Canada relations.
This development marks an escalation in protectionist policies during Trump's second term. The timing is particularly notable, coinciding with the imminent expiration of the temporary tariff pause, known as Liberalization Day. Treasury Secretary Scott Bessent noted the possibility of extending this pause until Labor Day. The market reaction was swift, with the Canadian dollar dropping by 0.7%, and financial markets tempering earlier gains.
Canada, while emphasizing its status as the United States' second-largest trading partner, remains open to negotiations even as it prepares for potential countermeasures. The current situation is part of a longstanding trade conflict that began in March 2025, featuring prior 25% tariffs on Canadian goods and ongoing retaliations, adding to the global supply chain uncertainties. This episode further exemplifies the enduring trade tensions touched off earlier in the year and highlights the continuing challenges in U.S.-Canada relations.
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