**Trump Accuses Canada of Economic “Attack” Over Digital Tax**
President Donald Trump has sharply criticized Canadian Prime Minister Mark Carney, calling Canada’s new digital services tax an economic “attack” on the U.S. The 3% levy targets American tech giants like Google, Amazon, and Meta, retroactively billing them \$2 billion.
Despite initially positive relations after Carney’s April election, trade tensions have reignited. Trump took to Truth Social on June 27, condemning the tax as “blatant” and comparing it to EU measures. He halted all trade negotiations in response.
The tax, passed over a year ago, applies to foreign tech firms with significant Canadian revenue. Trump claims it unfairly targets U.S. companies, though experts note its timing aligns with long-planned implementation.
Trump warned of retaliatory tariffs within a week, stating the move “won’t work out well for Canada.” He suggested talks could only resume if Canada withdraws the tax but added dismissively, “It doesn’t matter to me.”
Prime Minister Carney remained calm in response, emphasizing Canada’s commitment to protecting its economic interests. His measured reaction contrasts with Trump’s fiery rhetoric.
McGill professor Daniel Beland noted the tax wasn’t unexpected, questioning Trump’s sudden outrage. He warned the escalation could further strain fragile trade relations.
With negotiations frozen and tariffs looming, the dispute threatens to undo recent diplomatic progress, leaving both nations at an economic crossroads.
