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Canada proceeds with digital services tax despite Trump's threat to terminate trade talks, as tech companies face a 3% tax on revenue from Canadian users retroactive to 2022.

President Donald Trump ceased trade talks with Canada and will soon announce a new tariff rate the country will have to pay, he said in a Truth Social post on Friday.

President Trump says he's "terminating all discussions on trade with Canada, effective immediately," after Canada announced a digital services tax on large foreign and domestic technology companies.

Canada is also heavily impacted by Trump's 50% tax on steel and aluminum imports — the country is the largest foreign supplier of those materials to the U.S.

President Donald Trump said on Friday that because of Canada’s digital services tax on American tech companies, the U.S. will end all trade talks with its northern neighbor.