Trade with Canada continues to ebb and flow after tech tax pauses for negotiations

For months, President Donald Trump has looked to renegotiate trade with Canada, and last week that goal hit a major hurdle.

In a Truth Social post Friday, President Trump warned Canada the price of doing business is about to go up with new tariffs and declared the trade talks over after accusing the country of copying European Union strategy with the Digital Services Tax.

Canada's Prime Minister Mark Carney also said its tight relationship with the U.S. is at an end amid the announcement of the Digital Services Tax on American technology companies that followed the U.S.'s 50% tariffs on steel and aluminum as well as 25% tariffs on autos.

The Digital Services Tax Act was supposed to take effect on Monday, but "in anticipation of a mutually beneficial comprehensive trade arrangement," Carney and Trump agreed negotiations will resume "with a view towards agreeing on a deal by July 21, 2025."