Canadian prime minister has blunt response after Donald Trump accused them of ‘blatant attack’

President Donald Trump has accused Canadian Prime Minister Mark Carney of launching an economic “attack” on the United States after Canada introduced a new digital services tax targeting American tech companies.

Since Carney’s surprise election win in April, relations between the U.S. and Canada had seemingly improved, partly due to Trump’s respect for Carney’s business background. However, tensions have flared again during ongoing trade negotiations.

Canada’s new tax imposes a 3% levy on the Canadian revenue of companies like Amazon, Google, Meta, Uber, and Airbnb. The tax is retroactive, resulting in a $2 billion bill for U.S. firms due by the end of the month.

Trump lashed out on Truth Social on June 27, calling the tax a “direct and blatant attack” on the U.S., comparing it to similar EU measures. He announced the suspension of all trade discussions with Canada and warned of upcoming tariffs within a week.

When asked for a response, Prime Minister Carney remained composed, saying Canada would continue trade talks in the best interest of its citizens.

Trump later warned reporters that the situation “won’t work out well for Canada” and implied the only way to resume talks was for Canada to scrap the tax, although he added, “It doesn’t matter to me.”

McGill University professor Daniel Beland noted the tax law was passed over a year ago and wasn’t a surprise. He said Trump’s dramatic reaction comes just before implementation, complicating already fragile trade negotiations.