US President Donald Trump said Friday the US was ending all trade talks with Canada “effective immediately” over its digital services tax that would impact US tech firms, calling it a “direct and blatant attack on our country.”
Canada’s 3% digital services tax went into effect last year, but its first payments are due Monday, with US companies expected to shell out nearly $2.7 billion. Trump said US tariffs on Canadian goods would be applied within the next week. Last month, the US and UK agreed a trade deal despite Westminster enacting a 2020 digital services tax.
The S&P 500 closed at a record high Friday as investors overlooked Trump’s threat to end talks with one of Washington’s biggest trading partners.
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