EXPLAINED: What is Canada’s Digital Tax & Why it TRIGGERED Trump to KILL All Trade talks? |Trade War

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Explained! Why President Trump abruptly ended all trade talks with Canada. Trump called Canada's Digital Services Tax a “direct & blatant attack” on U.S. firms. The tax, retroactive to 2022, targets tech giants like Amazon, Meta, and Google, sparking fierce backlash. Trump also threatened new tariffs on Canadian exports, reigniting major trade tensions. With over 80% of Canadian exports headed to the U.S., the move could disrupt industries and escalate economic strain on both sides of the border.    #TrumpVsCanada #DigitalServicesTax #USCanadaTensions #TradeWar #TrumpTradePolicy #CanadaTax #BigTechTax #USCanadaRelations #TariffThreat #BreakingNews #Amazon #Google #Meta #Uber #TradeTalksCollapsed #RetaliationPolitics #TruthSocialPost #GlobalTradeCrisis #TechTaxBattle #DigitalTaxDispute #USExports #CanadaEconomy #Trump2025 #TradeDisruption #USPolitics #CanadaNews #CrossBorderTensions #TradeBacklash #RetroactiveTax #EconomicTensions #NorthAmericaTrade #GlobalMarketImpact  Also Read  Canadian’s Viral Post Slams Sky-High Bengaluru Deposits: ‘I Could Buy A Thar Instead!’ :: https://www.oneindia.com/bengaluru/canadian-s-viral-post-slams-sky-high-bengaluru-deposits-i-could-buy-a-thar-instead-7786205.html?ref=DMDesc  Trump Intends To Resolve North Korea Conflict Amid Reports Of Rejected Letter :: https://www.oneindia.com/international/trump-intends-to-resolve-north-korea-conflict-amid-reports-of-rejected-letter-7785511.html?ref=DMDesc  Indian Student Chants ‘Shankar Bhagwan Ki Jai’ At Graduation In Canada, Video Goes Viral :: https://www.oneindia.com/international/indian-student-chants-shankar-bhagwan-ki-jai-video-goes-viral-canada-011-7785461.html?ref=DMDesc    ~GR.124~HT.408~

Transcript

00:00U.S. President Donald Trump on Friday decided to abruptly kill all trade talks with Canada

00:21after it decided to go ahead with a new digital services tax on foreign as well as domestic

00:27technology companies. In retaliation to this, Trump decided to end all trade talks with Canada

00:34and threatened imposing additional tariffs on exports from the U.S.'s northern neighbourhood.

00:41In a post on Truth Social, Trump termed Canada a very difficult country to trade with

00:48and called the new Canadian digital tax a direct and blatant attack on the U.S.

00:54So, what exactly is this digital services tax imposed by Canada?

01:00Canada's Digital Services Tax Act was first proposed in 2019 and approved and enforced in June last year.

01:09This digital services tax is a levy on tech-driven news generated from Canadian users even if the

01:17providers do not have a physical presence in the country. As per this tax, large technology firms

01:24with global revenues exceeding $820 million and Canadian revenues of more than $14.7 million

01:33must pay a 3% levy on certain digital services revenues which they earned in Canada.

01:41Now, one of the most contentious parts of the new framework for businesses

01:45is the retroactive nature of the tax. That is, that this new levy will be applicable on revenues made

01:53by a company starting back right from January 1, 2022. That is, over three years of revenue.

02:02Now, to put things into perspective, U.S. companies such as Amazon, Meta, Google and Uber face an estimated

02:10$2 billion in bills under the new tax imposed by Canada.

02:16And that is why Trump has taken so harshly to the new Canadian tax.

02:22On June 11, 21 U.S. Congress members urged Trump to pressure Canada into rolling back this tax,

02:30arguing that it would set a terrible precedent having long and lasting impacts on global tax and trade

02:37practices. And Trump acted. After posting about his decision to end all trade talks with Canada,

02:44Trump also threatened with imposing additional tariffs on Canadian goods and services,

02:50and warned that Canada was foolish to do it and it will not work out well for them.

02:57Now, the U.S. is Canada's largest trading partner by far,

03:01with more than 80 percent of Canadian exports destined for the U.S. A disruption due to tariffs

03:07on products like automobiles, minerals, energy or aluminium could have massive ripple effects

03:14across both the economies, but especially on the Canadian economy.

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