President Donald Trump announced the termination of trade talks with Canada, citing their decision to impose a digital services tax, and warned of new tariffs to be introduced within the next week.
“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 posted Friday on Truth Social.
Akayla Gardner for Bloomberg News:
The Canadian dollar dropped more than 0.5% almost immediately. Canada’s benchmark equity index fell, and the shares of companies that rely on trade across the border, including General Motors Co. and apparel maker Canada Goose Holdings Inc., also took a hit.
Canada is poised to proceed with implementing its new digital tax, with the first payments due Monday, the country’s finance department said earlier Friday. Business groups in the country have opposed the levy, arguing it would increase the cost of services and invite retaliation by the US.
A group of 21 US lawmakers wrote to Trump earlier this month asking him to push for the tax’s removal, estimating it will cost American companies $2 billion. Trump in his trade push has long railed against taxes and other non-tariff barriers, casting them as an impediment to US exporters.
The Canadian digital services tax, which is similar to one implemented by some other countries including the UK, is equal to 3% of the digital services revenue that a firm makes from Canadian users above C$20 million ($14.6 million) in a year. It would apply to companies including Meta Platforms Inc. and Alphabet Inc.
MacDailyNews Take: Canada is now forced to rethink its program of theft from American companies.
Interns: Tap That Keg
! Prost, everyone! 
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