U.S. President Donald Trump speaks to the press at the White House in Washington, D.C., the United States, on June 27, 2025. Trump announced Friday that the United States would terminate all trade talks with Canada due to Canada's digital services tax on U.S. tech companies. [Photo by Hu Yousong/Xinhua]

U.S. President Donald Trump announced Friday that the United States would terminate all trade talks with Canada due to Canada's digital services tax on U.S. tech companies.

Canada has just announced that they are putting a digital services tax on American technology companies, which is a direct and blatant attack on the United States, said Trump in a post on social media.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," said Trump.

The United States would inform Canada the U.S. tariffs that apply to Canadian businesses within the next seven days, according to Trump.

Canada is copying the European Union in introducing digital services tax, noted Trump.

The United States is scrambling to wind up trade talks with a large number of trading partners as the self-imposed deadline of July 9 is approaching.

However, White House Press Secretary Karoline Leavitt on Thursday said Trump could extend the deadline.