NEW YORK: US President Donald Trump has again threatened on Friday that the United States would terminate all trade talks with Canada due to Canada’s digital services tax on American technology companies. Canada had announced a day ago that that they are putting a digital services tax on US technology companies. According to Trump this tax introduction on tech companies “ is a direct and blatant attack on the United States.
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” said Trump.
According to new agency reports the United States would inform Canada the US tariffs that apply to Canadian businesses within the next seven days, according to Trump.
Trump says “Canada is copying the European Union in introducing digital services tax.”
The United States is scrambling to wind up trade talks with a large number of trading partners as the self-imposed deadline of July 9 is approaching.
However, White House Press Secretary Karoline Leavitt has indicated that Trump could extend the deadline.
According to economic experts America’s GDP has temporarily marked a dip of over 0.5 per cent, thanks to the tariff controversy.