The president of the United States, Donald Trump, announced on Friday that the commercial conversations with Canada are finishing and will soon impose a new rate on the country.
The movement, made public through a Social publication of truthIt follows the launch of a digital services tax (DST) of Canada, which Trump described as “a direct and shameless attack in our country.”
He wrote: “According to this atrocious tax, we are finishing all discussions about trade with Canada, with immediate effect. We will inform Canada the rate they will pay to do business with the United States of America in the next seven days.”
The Canada DST, which will enter into force on Monday and applies retroactively to 2022, is aimed at the income of digital services instead of physical goods.
It affects large online platforms, many of them based in the United States, including goal, Apple, Google, Amazon and Microsoft.
A report of the non -partisan Congress research service indicated that DSTS disproportionately affects US technological giants.
Trump has long criticized such taxes, calling them “non -tariff commercial barriers” during negotiations with several countries.
Canadian companies and trade associations have warned the government that the new tax could trigger serious commercial falls with the United States.
Canada is still the largest buyer of American goods, importing $ 349 billion by value last year. He exported $ 413 billion in goods to the United States, qualifying as the third largest import source in the United States.
Experts say that a new wave of rates would probably lead to retaliation by Canada, potentially damaging both economies.
Prime Minister Mark Carney's office told CNN that his government is considering his answer.
Previously in his second term, Trump threatened to impose a 25% rate of the blanket on all Canadian exports. Until now, most Canadian goods have remained exempt in the United States-Mexico-Canada (USMCA) agreement, negotiated during Trump's first mandate.
However, Canada has not been completely saved. A 25% tariff remains in place in strange cars, car parts, steel and aluminum.
Trump then doubled those 50% rates for steel and aluminum imports.
Canadian exports that do not meet USMCA have faced the full rate of 50%.
Canada responded with a 25% tariff on US vehicles that fall outside the USMCA rules. It also retaliates against previous steel and aluminum tariffs with tariffs of US products worth approximately $ 43 billion, including whiskey, sports articles and appliances.
Trump's announcement caused a quick reaction on Wall Street. The Dow, which had uploaded up to 580 points the earliest Friday, closed only 191 points (0.4%). The S&P 500 fell 0.06% after approaching a record, while Nasdaq fell 0.2%.
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