President Trump on Friday said he was cutting off trade talks with Canada and threatened to set a new tariff rate on the country's goods within the next week. Trump said the move was in response to Canada's move to implement a digital services tax on technology companies,

The president posted on Truth Social that Canada had planned to put a tax on U.S. technology companies, calling the move "a blatant attack."

Trump’s return to office sparked a tit-for-tat trade war between Washington and Ottawa after he announced sweeping 25 per cent tariffs on Canadian goods. Those levies were later amended with carve-outs for goods covered by the USMCA trade deal, but new sectoral tariffs on steel and aluminium have hit Canada hard.