Trump ends trade talks with Canada

US President Donald Trump has reportedly terminated trade talks with Canada, citing a newly imposed Canadian tax on tech companies including ones based in the US, the president announced in a social media post on Friday June 27.
The digital services tax on US tech companies imposed by Canada is a “direct and blatant attack on our country,” the president wrote in a Truth Social post.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. 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 [sic],” he said on Friday.

What this means for the steel trade dynamics between the pair remains murky, with Canada a top supplier of steel to the US.

In the first six months of the second Trump Administration, the relationship between the US and its northern neighbor has been fraught, with Trump imposing 25% tariffs on steel imports in mid-March and then doubling levies in early June.

Trump’s tariff policies have curbed the inflow of Canadian steel, evidenced by volumes of Canadian carbon and alloy steel falling to its lowest level in almost five years in May.

The office of Canadian Prime Minister Mark Carney did not respond to Fastmarkets’ request for comment at the time of publication.

Alesha Alkaff

fastmarkets.com