WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
US President Donald Trump said today that his country's trade talks with Canada are immediately ending because it has no intention of giving up on a tax on American technology companies.
Trump called the tax a "direct attack" on the United States.
In a post on his social network Truth Social, Trump wrote that Canada had just notified the United States that it would proceed with its plan to introduce the tax, which is set to take effect on Monday.
"In light of this incredibly bad tax, we are breaking off all trade talks with Canada, effective immediately. We will notify Canada within the next seven days of the Tariffs they will pay on their business with the United States," Trump wrote, capitalizing the word "tariff."
Canada's digital services tax applies to domestic and foreign companies when they have a relationship with internet users in Canada.
This tax will hit companies such as Amazon, Google, Meta, Uber and Airbnb and will amount to three percent of the revenue generated through Canadian users. Its application will be retroactive, which means that by the end of the month, American companies will owe Canada two billion dollars in the disputed tax.
The trade conflict between the United States and Canada began after Trump came to power, when he first began calling Canada the 51st American state and threatening to force it to join the United States with economic measures, and then imposed high tariffs on it.
The topic of the negotiations is reducing Trump's tariffs.
