U.S. President Donald Trump said in a social media post on Friday (June 27) that he is suspending trade talks with Canada.
He blamed Canada's intention to enact a digital services tax on the revenue that big tech companies receive from Canadian users.
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," he posted.
The Digital Services Tax Act received Royal Assent on June 20 and goes into effect Saturday, June 28. It applies a three-per-cent tax on all revenue earned from certain digital services that rely on engagement, data and content contributions of Canadian users, or revenues from sales or licensing of Canadian user data.
"They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also," Trump said.
Prime Minister Mark Carney addressed the news briefly on Parliament Hill on Friday in response to questions from reporters.
"We'll continue to conduct these negotiations in the best interest of Canadians," he said. "It's a negotiation."
Trump said the tariff measures Canada will be subject to are yet to be determined.
"We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period," he said.
B.C. Premier David Eby told reporters on Friday said he hopes this was a "temporary setback," calling it "another example of the instability and unpredictability of this president."
Eby added this to underline the "crucial importance" of work being done to diversify trade relationships.
American visitors to Canada say they are not pleased with the news
Disembarking from the FRS Clipper ferry in Victoria, coming from Washington state on Friday morning, Seattleite George Calisto had strong words for his county's leader when asked about the trade news.
"The guy is a buffoon," Calisto said. "That's all I can say. He's a total buffoon."
Also coming into B.C. on Friday was David Hendrickson. His daughter moved to Victoria after Trump was re-elected. He said his family "detests" Trump, and he was worried about the impact on Canadians' perceptions of Americans.
"I'm 79, I've never been to any kind of a protest rally or whatever," he said. "We've been to two now."
