Trump ends all U.S. trade talks with Canada over digital services tax
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Trump Ends Canada Trade Talks Over Digital Services Tax
Above: Canadian Prime Minister Mark Carney and U.S. President Trump at the G7 Summit in Kananaskis, Alberta, Canada on June 16, 2025. Image copyright: Chip Somodevilla/Getty Images
The Spin
Pro-Trump narrative
This retroactive digital services tax is nothing but discriminatory protectionism aimed at American innovation and success. Canada's copying the EU's anti-competitive playbook, targeting U.S. tech companies for past profits, while expecting special treatment in trade talks. It's time the U.S. showed Canada some economic reality and who needs who more.
Anti-Trump narrative
Trump’s abrupt departure from negotiations highlights his chaotic, unpredictable diplomacy, which risks harming the U.S. economy in the long run. This tax impacts all companies equally, and Canada has every right to collect fair revenue from digital giants profiting from Canadian users — yet Trump's approach only deepens economic uncertainty for everyone.
Liberal narrative
Canada must stand firm on sovereignty and fair taxation while diversifying trade relationships beyond an unreliable partner. This negotiation tactic shows exactly why Canada needs stronger ties with Europe and other like-minded allies for economic security.
Conservative narrative
Carney's stubborn refusal to drop this foolish tax is putting millions of Canadian jobs at risk for a few billion in revenue. Industry groups, premiers, and even Biden warned against this — now Trump's called the bluff and Canada loses.