In a dramatic move, US President Donald Trump has abruptly cut off trade negotiations with Canada, citing Canada’s new tax targeting American technology companies. The decision has shattered recent optimism about easing tensions between the two countries.
Why Did Trump End the Talks?
The unexpected announcement came on Friday, local time. President Trump called the Canadian tax “a blatant attack” on US firms and warned that new tariffs on Canadian goods would be announced within the next seven days.
Recent Calm Now in Jeopardy
This sudden breakdown reverses what seemed like progress after the mid-June G7 Summit, where Trump and Canadian Prime Minister Mark Carney agreed to finalize a new economic deal within 30 days. Instead, relations between the two allies have once again become tense.
Markets and Consumers Brace for Impact
Earlier the same day, US Treasury Secretary Scott Bessent had sounded hopeful about trade, highlighting new progress with China on securing critical minerals for American manufacturing. But the frequent and unpredictable rollout of Trump’s new import tariffs has created uncertainty for global markets and is starting to weigh on consumer spending — a key pillar of the US economy.
What’s Next? President Trump says he will reveal new tariff rates on Canadian goods within the week, leaving businesses on both sides of the border bracing for what could come next.
Stay tuned for updates on how this trade dispute may affect other global tariff negotiations and your business.
