BY C STONE | STONE NEWS NETWORK ||| WASHINGTON, D.C.
U.S. President Donald Trump abruptly ended trade discussions with Canada today, citing the digital services taxes from U.S. technology giants.
He wrote on Truth Social today:
"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. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period."
The 3% tax was expected to put $2.7 billion dollars into the Canadian government.
From the NYTimes:
A decision by Mr. Trump to follow through and increase tariffs on a North American neighbor could unleash chaos on both sides of the border, with U.S. companies and consumers facing the brunt of higher import costs. Financial markets briefly recoiled over the breakdown in negotiations, though the S&P 500 recovered and reached a new high Friday.
Canada’s 3 percent digital services tax has been in place since last year, but the first payments are only due beginning on Monday. Because the tax is retroactive, American companies were preparing to turn over roughly $2.7 billion to the Canadian government, according to a trade group for large American tech companies.
U.S. officials from both parties have long chafed at taxes like the one Canada has imposed, calling them unfairly targeted at services provided by American companies like Google, Apple and Amazon. The foreign policies target the revenue that businesses earn from online advertising, the sale of user data and other services, even if the firm is headquartered elsewhere.
Technically this is a tariff against the U.S. We weren't able to research if the U.S. has the same kind of reciprocal arrangement due to time.
This tariff plan was put into place by the previous Liberal government. It apparently took years to pass.
Not a fan.
Comments
Post a Comment