Washington, (EFE) .- President Donald Trump decided to break the commercial negotiation with Canada immediately after reproaching that country his intention to tax digital services to US technological.
“We have just been informed that Canada, a country with which it is very difficult to trade, including the fact that it has charged our farmers tariffs of up to 400% for years about dairy products, has just announced that it will tax digital services to our technological companies, which is a direct and flagrant attack on our country,” he said on his platform, Truth Social.
Due to this tax, as he added, the United States ends “all” commercial discussions with Canada “with immediate effect.”
“In the next seven days we will communicate to Canada the tariff you will pay to do business with the United States,” said Trump, who reproached that country being copying the imposition of that tariff on technological to the European Union.
The official deadline to reach new pacts after the application by Trump of the so -called “reciprocal tariffs” ended this July 9, but the Republican leader had already dropped this Friday that he could extend or shorten it and that they would not close pacts with all.
Canadian digital tax as of Monday
Canadian finance minister François-Philippe Champagne warned last week that the digital tax is still in force in Canada and that the first payment, which affects among others large US multinationals as a goal, has to be carried out next Monday, June 30.
The tax, which will be applied retroactively since 2022, is 3% of the income above 20 million dollars that companies obtain from digital services from Canadian residents.
Champagne also indicated that the application of the digital tax was part of the commercial negotiations that Washington and Ottawa were maintaining after the imposition of tariffs by the Trump administration.
Lee: Trump defends tariffs and sees possible agreement with Canada
The US Treasury Secretary Scott Besent announced yesterday that the US government had reached an agreement with the G7 with which its large multinational companies would avoid paying 15% taxes in the countries where they operate, as established by the OECD Global Fiscal Agreement.
“Pilar 2 taxes of the OECD will not apply to US companies and we will work cooperatively to implement this agreement in the OECD-G20 inclusive framework during the next weeks and months,” said Besent.
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