Trump Halts Trade Talks
President Donald J. Trump announced Friday that all trade talks with Canada are officially suspended—a direct response to Ottawa’s decision to implement a digital services tax targeting major American technology firms. The President also confirmed that a steep new tariff rate on Canadian goods will be unveiled within days.
“Due to this outrageous tax, we are halting ALL trade discussions with Canada, effective immediately,” Trump declared on Truth Social. “Canada will be informed of the tariff they’ll be paying to trade with the United States within the next seven days. Thank you!”
🇺🇸 Trump Defends American Companies from Foreign Greed
Canada’s new digital tax is set to go into effect this Monday. It imposes a 3% tax on revenue earned by digital companies whose global earnings exceed $14.57 million USD (20 million CAD). Unsurprisingly, the tax primarily targets American businesses like Google, Amazon, and Facebook.
Despite an international understanding among G7 countries to pause new tech taxes during ongoing negotiations, Canada decided to go rogue—prompting President Trump to act swiftly.
⚠️ House Republicans Sound the Alarm on Foreign Tech Taxes
Conservative lawmakers have already been preparing for this. The House GOP’s domestic policy bill includes Section 899, which authorizes a retaliatory U.S. tax of up to 20% on foreign investors from countries that impose discriminatory digital taxes against American firms.
“This is about protecting American innovation,” said one Republican lawmaker. “These foreign taxes are nothing more than a backdoor attack on U.S. job creators.”
The bill calls these taxes “unfair,” “discriminatory,” and anti-competitive—especially considering the U.S. provides the infrastructure and market that supports much of the global tech economy.
🧾 Biden Treasury Weakens U.S. Position With Globalist Concessions
Meanwhile, Biden-appointed Treasury Secretary Scott Bessent is pushing for Senate Democrats to remove the U.S. retaliatory tax—despite bipartisan concern over foreign targeting of American firms.
Bessent claims the U.S. reached a “deal” under the OECD global tax agreement that would exempt U.S. companies from the 15% minimum tax, but critics argue the Biden administration has repeatedly put global consensus ahead of American interests.
🌍 Global Bureaucrats Try to Seize U.S. Tax Authority
Efforts to regulate how and where big tech companies are taxed have become the latest battlefield in the struggle between American sovereignty and globalist overreach.
The OECD, an unelected economic organization made up of foreign bureaucrats, has tried to impose a global minimum tax rate and dictate where U.S. companies should pay taxes—a move that Republican leaders and many business experts say would severely harm the American economy.
Although the OECD’s “Pillar 1” tax component—designed to shift tax rights to foreign countries—has effectively failed, countries like Canada are moving forward with their own national taxes anyway.
“Pillar 1 is dead,” said University of Michigan law professor Reuven Avi-Yonah. “So now we’re going to see more countries acting alone. The U.S. will need to respond with tariffs or other economic measures.”
🚨 Trump: America Comes First—Or You Pay the Price
President Trump’s America First trade policy sent a clear signal: foreign governments that exploit U.S. companies will face serious consequences. His administration’s tough stance on unfair trade practices is a reminder of what’s at stake in 2025 and beyond.
“If foreign countries want access to the American market, they must play fair,” a senior trade advisor told reporters. “President Trump is doing what Biden won’t—defending our tech industry, our workers, and our economy.”
💬 BOTTOM LINE:
- Canada just slapped U.S. tech firms with a new tax.
- Trump isn’t having it—he’s halting trade talks and promising steep tariffs.
- Biden’s team is trying to play nice with globalists, but Trump is putting America First.
