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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesPresident Donald Trump announced on June 27, 2025, that he was terminating U.S. trade discussions with Canada over its digital services tax. Two days later, Canada said it would rescind the tax to advance broader negotiations, and the governments agreed to resume talks with a July 21, 2025, target for a deal. The announcement is historical—not a new action in October 2026.
Did Trump really end trade talks with Canada?
Yes. On June 27, 2025, Trump said he was ending trade discussions with Canada because of its digital services tax. The Associated Press quoted his social-media statement: “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.” He also said a tariff decision would follow, according to The Associated Press.
That announcement did not remain the final word on the talks. On June 29, 2025, Canada announced it would rescind the tax in anticipation of a mutually beneficial trade arrangement. The two governments said negotiations would resume, with a goal of reaching a deal by July 21, 2025, according to the Government of Canada. The target date was a goal, not confirmation that a deal was reached.
What was Canada’s digital services tax?
The Office of the United States Trade Representative described Canada’s enacted tax as a 3% levy on certain gross revenues connected to online marketplaces, online targeted advertising, social media platforms and user data. That rate and description come from the USTR’s 2025 National Trade Estimate; they do not, by themselves, establish the full statutory rules or whether any particular company owed tax. See the USTR’s 2025 National Trade Estimate.
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In this dispute, the tax mattered because the United States objected to the levy and Trump cited it as the reason for halting trade discussions. The available account does not establish the tax’s total fiscal impact or assessments against named companies.
What changed after the announcement?
- June 27, 2025: Trump announced that the United States was terminating trade discussions with Canada over the tax.
- June 29, 2025: Canada said it would rescind the tax to advance broader negotiations.
- After the rescission announcement: The governments agreed to resume negotiations, aiming for a deal by July 21, 2025. That target should not be mistaken for proof of a completed agreement.
In July 2026, AFP fact-checkers identified a circulating clip and claims about a newly terminated negotiation as referring to the 2025 dispute, which they described as resolved after Canada rescinded the tax and talks resumed. Their fact check is available at AFP Fact Check.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does the 2025 announcement describe the current status of negotiations?
No. It records what Trump announced on June 27, 2025, and should not be presented as a new termination. Prime Minister Mark Carney issued a statement about Canada-U.S. trade negotiations on August 21, 2026, but that statement alone does not establish the negotiations’ final status as of October 8, 2026. See the Prime Minister of Canada’s statement.
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