Trump called Canada “a very difficult country to trade with,” blaming the breakdown in progress on Canada’s Digital Services Tax [DST], a levy on tech revenues generated from Canadian users, which is set to go into effect on Monday, June 30. Trump called the 3% digital services tax “a direct and blatant attack” on the U.S.

Canada has canceled its digital services tax to facilitate trade talks with the U.S. Prime Minister Mark Carney and President Donald Trump aim to finalize a trade deal by July 21, 2025. The Canadian finance ministry revealed this strategic move to improve bilateral relations.

Canada's decision to implement a Digital Services Tax (DST) has sparked a strong reaction from President Donald Trump, who sees it as a direct attack on the US. Despite the tension, Canada remains committed to negotiations,