Advertisement How a tax on companies like Amazon, Google has stalled trade talks with Canada President Trump has decided to stop trade negotiations with Canada, citing a digital service tax affecting American companies as the reason. Editorial Standards ⓘ

President Donald Trump announced the suspension of trade talks with Canada, citing the country’s digital service tax on American companies like Amazon and Google as the reason for the decision. “I said, we’re going to stop all negotiations with Canada right now until they straighten out their act,” the president said in the Oval Office on Friday.”So Canada put a charge on some of our companies, and Canada’s been a very difficult country to deal with, over the years. You know, we hear Canada, we have a great relationship with the people of Canada, but it’s been very difficult.”Hearst Television White House Correspondent Kalyn Norwood asked the president if Canada could change his mind about the situation, to which he responded, “No, they put a tax on companies that were American companies that they shouldn’t, a very severe tax. And, yeah, I guess they could remove it. They will … it doesn’t matter to me.”In that exchange, Trump also warned that the situation might not work out well for Europe either. So far, the president has placed 50% tariffs on steel and aluminum and 25% tariffs on auto imports, but he could raise rates in just over a week when his self-imposed 90-day negotiating window ends.