In a shocking turn of events, President Donald Trump has announced the immediate termination of trade discussions with Canada, igniting a fierce diplomatic crisis. This drastic move comes in response to Canada’s controversial digital services tax, which Trump has labeled a “direct and blatant attack” on U.S. technology companies.

The announcement, made just moments ago, has sent shockwaves through the political landscape, especially given the recent efforts by Canadian Prime Minister Justin Trudeau to mend relations ahead of the G7 summit. Trump’s decision is particularly surprising as both leaders had previously agreed to resolve trade disputes within 30 days following their bilateral meeting in Alberta.

Now, the U.S. president is poised to impose new tariffs on Canadian goods, with specifics yet to be disclosed. Historically, such tariffs have reached up to 25%, raising concerns about retaliatory measures from Canada and the potential fallout on both economies.

The timing of this announcement is critical, as it not only disrupts ongoing negotiations but also threatens to escalate tensions between the two nations. Trump’s frustration stems from Canada’s unilateral decision to impose the digital tax while trade discussions were still underway, marking a significant breakdown in diplomatic communication.

As the situation unfolds, the implications for U.S.-Canada relations and the broader economic landscape remain uncertain. Experts warn that this could lead to a trade war, with both sides bracing for potential repercussions. Stay tuned as we continue to follow this developing story and its impact on international trade dynamics.