SlateStone Wealth chief market strategist Kenny Polcari discusses the place traders are placing their consideration on ‘The Claman Countdown.’
President Donald Trump mentioned on Friday that the U.S. is terminating all commerce discussions with Canada.
Trump cited Canada’s digital providers tax on American tech corporations as the explanation for ending commerce talks.
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote in a put up on Fact Social.
TREASURY SECRETARY REVEALS ‘PEACE DEALS’ WITH CHINA AS RARE EARTH SUPPLIES SET TO FLOW
Trump mentioned the administration will inform Canada inside the “next seven day period” of what tariff it’s going to pay to do enterprise with the U.S.
The president added in his put up that Canada is “a very difficult Country to TRADE with” and claimed that Canada has levied tariffs of as much as 400% on U.S. dairy merchandise.
President Donald Trump meets with Canadian Prime Minister Mark Carney on the G7 summit in Kananaskis, Alberta, Canada, on June 16, 2025. (Reuters/Kevin Lamarque / Reuters)
Canada’s digital providers tax took impact in June 2024 and requires massive companies, whether or not they’re headquartered in Canada or elsewhere, to pay a 3% tax on income earned from participating with on-line customers in Canada in the event that they meet sure circumstances.
TRUMP WARNS SPAIN: PAY UP FOR DEFENSE OR PAY ‘TWICE AS MUCH’ IN TRADE NEGOTIATIONS
Funds on the tax are because of be collected on Monday, and the tax applies to income from on-line market providers, internet advertising, social media providers and sure gross sales of person information.
The Canadian authorities and the Trump administration have clashed over tariffs after the president slapped a sequence of levies on Canadian items after his return to the White Home earlier this 12 months, prompting Canada to retaliate with tariffs on American exports.
Canadian Prime Minister Mark Carney and President Donald Trump had beforehand set a deadline of July 21, 2025, to achieve a deal on a brand new commerce settlement between the 2 international locations. (Artur Widak/NurPhoto by way of Getty Photos / Getty Photos)
A lot of these tariffs stay in impact as the 2 sides search to compromise on a brand new commerce framework. The U.S.-Mexico-Canada Settlement (USMCA), which Trump negotiated throughout his first time period, is because of be renegotiated by subsequent 12 months – although the 2 governments have sought to conclude negotiations earlier.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Canadian Prime Minister Mark Carney and President Trump had beforehand set a deadline of July 21, 2025, to achieve a deal on a brand new commerce settlement between the 2 international locations – which have interaction in a big quantity of bilateral commerce.
The U.S. is Canada’s largest buying and selling companion, whereas Canada is the most important importer of American exports and one of many high three sources of U.S. imports.
