Breaking News: US-Canada Trade Talks Collapse Amid Digital Tax Dispute
Washington D.C. – June 28, 2025 – In a sudden and dramatic turn, President Donald Trump today announced the immediate termination of all trade discussions with Canada, citing the Canadian government’s recently enacted Digital Services Tax (DST) as a “blatant attack” on American businesses. The move marks a significant escalation in trade tensions between the two neighboring nations and has sent ripples through North American markets.
In a statement posted on Truth Social, President Trump labeled Canada a “very difficult” country to trade with, specifically pointing to the new DST, which he claims disproportionately targets major U.S. technology companies such as Meta, Apple, Google, Amazon, and Microsoft. The Canadian Digital Services Tax, which came into effect recently and is retroactive to 2022, requires large foreign and domestic businesses to pay tax on certain revenue earned from engaging with online users in Canada. The first payments are reportedly due beginning next week, with American companies facing an estimated $2.7 billion in back taxes.
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. He further warned that Canada would be informed of new tariffs on their goods doing business with the United States within the next seven days.
The termination of talks follows ongoing discussions where the U.S. President had previously raised concerns about DSTs, referring to them as “non-tariff trade barriers.” The Canadian government has yet to issue a full response, but the announcement is expected to elicit strong reactions from Ottawa and could lead to retaliatory measures.
Other Top US Headlines Today:
- Trump Lashes Out at Fed Chair Powell: President Trump unleashed a fresh volley of criticism at Federal Reserve Chair Jerome Powell, branding him a “stubborn mule” and a “stupid person” while demanding a 1% interest rate cut. Trump has long been a vocal critic of Powell’s monetary policy, asserting that high interest rates are detrimental to the U.S. economy. With Powell’s term concluding in May 2026, speculation is mounting about the potential for a new nominee to lead the central bank.
- Supreme Court Limits Nationwide Injunctions: The U.S. Supreme Court delivered a significant ruling today, limiting the ability of lower courts to issue nationwide injunctions. This decision is seen as a major victory for the Trump administration, which has frequently challenged such broad injunctions against its policies. The ruling could have far-reaching implications for future legal challenges to federal actions.
- University President Resigns Amid DEI Probe: The president of the University of Virginia announced their resignation today, becoming the latest in a series of university leaders to step down amidst the Trump administration’s nationwide scrutiny and efforts to scale back Diversity, Equity, and Inclusion (DEI) initiatives at academic institutions.
- Summer Heat Poses Risk, Child Hot Car Deaths Rise: As summer temperatures continue to climb across the U.S., reports indicate a concerning rise in child deaths from being left in hot cars. According to data from Kids and Car Safety, nine children have tragically died this year in such incidents, prompting renewed warnings to parents and caregivers.
These developing stories highlight a busy day in U.S. news, with significant developments in trade, politics, and social issues. Further updates are expected as the day progresses.
