Carney’s 30-Day Promise Unravels as Digital Tax Derails US Talks

The ambitious timeline set by Canadian Prime Minister Mark Carney for reaching a trade agreement with the United States has collapsed in dramatic fashion, as President Trump announced the immediate termination of all negotiations. The dispute centers on Canada’s implementation of a digital services tax that Trump characterizes as an attack on American business interests.
The rapid deterioration of talks represents a significant diplomatic failure for both leaders, who had publicly committed to finding common ground within 30 days following their G7 summit meeting. Carney’s attempt to position Canada as a reliable trading partner for the Trump administration has been undermined by his government’s decision to proceed with the controversial digital tax.
The financial implications for American technology companies are substantial, with the digital services tax requiring firms like Alphabet, Amazon, and Meta to contribute an estimated $3 billion in additional revenue to the Canadian government. The timing of the first payment deadline on Monday adds urgency to an already tense situation.
President Trump’s response has been characteristically direct, using his Truth Social platform to announce not only the end of negotiations but also his intention to impose retaliatory tariffs within seven days. His statement also highlighted broader trade grievances, including the high tariffs Canadian policies have imposed on American agricultural products, particularly dairy items that have faced taxes of up to 400%.