The new Canadian digital services tax also applies retroactively back to 2022. Trump was threatening to annex Canada, dubbing it America’s 51st state, even before he took office for a second time in January. And relations with Canada have become incredibly hostile thanks to Trump’s unnecessary provocations.

U.S. President Donald Trump says he's terminating all trade discussions 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, Trump said in a social media post Friday.

Canada is proceeding with its digital services tax on technology companies such as Meta Platforms Inc. despite a Group of Seven agreement that resulted in removing the Section 899 “revenge tax” proposal from US President Donald Trump’s tax bill.