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President Donald Trump said the US is ending trade talks with Canada, effective immediately, over a tax on digital services that will impact American tech companies. He also pledged to announce further tariffs on Canada within the next week, adding in a <\/a> that “they will be paying to do business with the United States of America.”<\/p>\n Canada’s digital services tax (DST) is set to take effect on June 30, though it will be applied retroactively. According to <\/em><\/a>, US companies are preparing to pay around $2.7 billion to the Canadian government to cover a three percent tax on revenue they generated from users in the country. Companies including Amazon, Google, Meta, Uber and Airbnb are subject to the levy, as things stand.<\/p>\n In his post on Friday, Trump called the DST “a direct and blatant attack on our country.” Amid trade talks with the US, Canada’s finance minister, Fran\u00e7ois-Philippe Champagne, said this month that the country had <\/a>. Trump and Prime Minister Mark Carney previously <\/a> they aimed to reach a trade deal by around July 20.<\/p>\n Since taking office in January, Trump has been using tariffs as a negotiating tactic with other nations. The US <\/a> with China over rare earth minerals this week, and it is soon set to reimpose some of the levies that were <\/a>.<\/p>\n The DST has been a bone of contention between the US and Canada for years. The Biden administration <\/a> the levy last year under the United States-Mexico-Canada Agreement.<\/p>\n Other jurisdictions have considered or enacted a similar tax. It was reported in May that Germany is <\/a> on platforms such as Google and Facebook.<\/p>\n<\/div>\n