SlateStone Wealth chief market strategist Kenny Polcari discusses where investors are putting their attention on ‘The Claman Countdown.’
President Donald Trump said on Friday that the U.S. is terminating all trade discussions with Canada.
Trump cited Canada’s digital services tax on American tech companies as the reason for ending trade talks.
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote in a post on Truth Social.
TREASURY SECRETARY REVEALS ‘PEACE DEALS’ WITH CHINA AS RARE EARTH SUPPLIES SET TO FLOW
Trump said the administration will inform Canada within the “next seven day period” of what tariff it will pay to do business with the U.S.
The president added in his post that Canada is “a very difficult Country to TRADE with” and claimed that Canada has levied tariffs of up to 400% on U.S. dairy products.
President Donald Trump meets with Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, Canada, on June 16, 2025. (Reuters/Kevin Lamarque / Reuters)
Following Trump’s announcement, the U.S. dollar gained 0.7% against the Canadian dollar.
Stocks pared their earlier gains on the news. The benchmark S&P 500 index reached an all-time high after rising 0.59% as of early afternoon, though it sank on the president’s announcement to a gain of about 0.21% as the market neared the end of this week’s trading.
Stocks pared their earlier gains on the news. (Adam Gray for Fox News Digital / Fox News)
Canada’s digital services tax took effect in June 2024 and requires large businesses, whether they’re headquartered in Canada or elsewhere, to pay a 3% tax on revenue earned from engaging with online users in Canada if they meet certain conditions.
TRUMP WARNS SPAIN: PAY UP FOR DEFENSE OR PAY ‘TWICE AS MUCH’ IN TRADE NEGOTIATIONS
Payments on the tax are due to be collected on Monday, and the tax applies to revenue from online marketplace services, online advertising, social media services and certain sales of user data.
The Canadian government and the Trump administration have clashed over tariffs after the president slapped a series of levies on Canadian goods after his return to the White House earlier this year, prompting Canada to retaliate with tariffs on American exports.
Canadian Prime Minister Mark Carney and President Donald Trump had previously set a deadline of July 21, 2025, to reach a deal on a new trade agreement between the two countries. (Artur Widak/NurPhoto via Getty Images / Getty Images)
Many of those tariffs remain in effect as the two sides seek to compromise on a new trade framework. The U.S.-Mexico-Canada Agreement (USMCA), which Trump negotiated during his first term, is due to be renegotiated by next year – though the two governments have sought to conclude negotiations earlier.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Canadian Prime Minister Mark Carney and President Trump had previously set a deadline of July 21, 2025, to reach a deal on a new trade agreement between the two countries – which engage in a significant amount of bilateral trade.
The U.S. is Canada’s largest trading partner, while Canada is the largest importer of American exports and one of the top three sources of U.S. imports.
