Just when tensions seemed to cool, a new clash has erupted between two close allies \u2014 the U.S. and Canada.<\/p>\n
President Donald Trump is accusing Canada of a \u201cblatant attack\u201d over its new 3% digital services tax on major U.S. tech companies like Amazon and Google, retroactive to 2022. The move could cost American firms up to $2 billion, due by the end of June.<\/p>\n
Trump fired back on Truth Social, calling Canada \u201cvery difficult to trade with,\u201d and announced a freeze on trade talks. \u201cWe\u2019ll let Canada know the tariff they\u2019ll be paying,\u201d he warned.<\/p>\n
Prime Minister Mark Carney remained calm, saying Canada would continue talks \u201cin the best interests of Canadians.\u201d But Trump doubled down, saying Canada had made a \u201cfoolish\u201d move and should remove the tax.<\/p>\n
U.S. lawmakers backed Trump, calling the retroactive tax an \u201cunprecedented\u201d and discriminatory cash grab. Trump also slammed Europe for similar taxes, insisting only the U.S. should penalize its own firms.<\/p>\n
After a tense phone call between Trump and Carney on Sunday night, Canada backed down, pausing the tax ahead of its July 1 deadline. Ottawa said the move supports renewed trade talks aiming for a July 2025 agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"
Just when tensions seemed to cool, a new clash has erupted between two close allies \u2014 the U.S. and Canada. President Donald Trump is accusing Canada of a \u201cblatant attack\u201d over its new 3% digital services tax on major U.S. tech companies like Amazon and Google, retroactive to 2022. The move could cost American firms…<\/p>\n