Canadian PM calls US trade talks very complex

Ottawa

Canadian Prime Minister Mark Carney described trade negotiations with the United States as "complex" after US President Donald Trump announced the end of all trade talks and threatened new tariffs. Carney said Canada would keep working to protect its people’s interests despite the challenges.

On Friday, Trump declared he would stop all trade discussions with Canada because of Canada’s new digital services tax on US tech companies. He called the tax a “direct and blatant attack” on the US.

Canada’s digital services tax, which starts on June 30, will make American tech giants like Amazon, Google, Meta, Uber, and Airbnb pay a 3% tax on revenue made from Canadian users.

Canada and the US have been negotiating to remove tariffs Trump placed on Canadian goods. These tariffs have hurt Canada’s economy. According to Statistics Canada, Canada’s real GDP fell by 0.1% in April. The drop was mainly due to problems in transportation equipment manufacturing, which includes car and truck exports to the US. Some carmakers reduced production because of uncertainty caused by US tariffs.

Prime Minister Carney said Canada will continue these tough talks carefully. “It’s a negotiation,” he explained, highlighting the importance of standing firm while trying to avoid more economic harm.

Trump also suggested that if Canada moves forward with the digital tax, more tariffs could follow, possibly making the trade situation worse.

These tensions show the deep divide between the two close neighbors, with Canada focused on fair taxation and the US aiming to protect its big tech companies from foreign taxes.