Former President Donald Trump announced on Friday that the United States will impose new tariffs on Canadian imports in response to Canada’s implementation of a Digital Services Tax (DST) targeting major U.S. tech companies. Trump also stated that all ongoing trade negotiations with Canada have been “canceled effective immediately.” The Canadian DST, set to take effect this year, places a levy on revenues earned by large digital platforms operating in Canada, most of which are based in the U.S.
Trump criticized the tax as “unfair retaliation” and vowed to defend American technology firms against what he called “hostile foreign taxes.” The announcement is expected to escalate trade tensions between the two countries and could impact key sectors such as agriculture, manufacturing, and digital commerce. Canadian officials have not yet issued a formal response, though the issue has been a growing point of friction in bilateral economic relations.
