Trump Stops All Trade Discussion with Canada over Threat to impose Digital Services Tax… Carney has NO IDEA what to do with imminent Collapse of critical industries including Auto, Energy, Lumber, Agriculture, Aluminum/Steel

Trade discussion with Canada has stopped

Trump: We’re ending all trade talks with Canada. All trade talks with Canada terminated!

U.S. President Donald Trump says he’s pulling back from the bilateral trade discussions because Canada plans to move ahead with its digital services tax.

President blames Canada’s digital services tax in social media post.

This is why Trump decided to go back into a trade war with Canada:

Canada is proceeding with its digital services tax on technology companies such as Meta despite a G-7 agreement that resulted in removing the Section 899 “revenge tax” proposal from Donald Trump’s tax bill https://t.co/QfKVDkKBGc

— Bloomberg (@business) June 27, 2025

Trump ending all trade talks with Canada immediately

U.S. President Donald Trump says his team is ending all trade talks with Canada effective immediately, citing disagreement over Canada’s controversial digital services tax as the reason for shutting down negotiations.

He made the announcement in a post Friday on Truth Social, calling the levy “a direct and blatant attack” on the U.S. and its technology companies.

Trump’s announcement is a wrench in ongoing trade discussions between the two countries, which have been in the throes of a trade war for months, since the president’s first slate of tariffs on Canadian goods in February.

Trump has since levied a series of sweeping and stacked tariffs on Canadian products, targeting a range of industries. Canadian countermeasures are also in place.

Consequently,

Below is a real-time impact analysis and a breakdown of the potential impacts, based on his latest policy shift:-

🔴 Immediate Consequences (2025-2026)

1. Auto Industry Crisis (Biggest Risk)

• Tariffs Expected: 25% on Canadian-built vehicles (similar to Trump’s 2018 threat).

• Impact:

  • U.S. car prices spike (Toyota, Honda, Ford models made in Canada will cost more).

  • Canadian job losses: Ontario plants (which export $50B+ in vehicles annually) face layoffs.

  • Retaliation: Canada may tax U.S.-made EVs (e.g., Tesla, Rivian).

2. Energy Trade Disruption

• Keystone XL Revival? Unlikely, but pipelines (Line 5, Enbridge) at risk if Trump pressures shutdowns.

• Oil Tariffs Possible: If imposed, U.S. refineries (which rely on Canadian heavy crude) will face shortages.

• Electricity Threat: Quebec’s hydro exports to New England could be taxed.

3. Agricultural Trade War Escalates

• Dairy & Poultry Targeted: Trump has long demanded Canada dismantle supply management.

• New Tariffs Likely: U.S. may tax Canadian beef, pork, or wheat (Canada could retaliate with tariffs on U.S. dairy, wine, or produce).

4. Aluminum/Steel Tariffs Return

• 10-25% tariffs expected (as in 2018), hurting U.S. manufacturers (beer cans, cars, planes need Canadian aluminum).

• Canada’s Move: May redirect exports to EU/Asia, but short-term pain for Quebec smelters.

5. Lumber Prices Surge

• U.S. homebuilders panic: Canada supplies ~30% of U.S. lumber—new tariffs = higher housing costs.

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📉 Long-Term Fallout (2026-2028)

Sector	Canada’s Pain	U.S. Pain
Autos	Ontario plant closures	Higher car prices, supply chaos
Oil/Gas	Alberta crude discounts deepen	Refinery shortages, gas price hike
Agriculture	Dairy farmers lose U.S. market	Food inflation (cheese, beef)
Manufacturing	Steel/aluminum layoffs	Beer, aerospace costs rise

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🇨🇦 Canada’s Likely Countermeasures

1. Retaliatory Tariffs (Targeting swing states like Michigan, Wisconsin, Florida).

2. Fast-Track EU/Asia Trade (Accelerate deals with India, UK, CPTPP nations).

3. WTO Lawsuit (Challenging tariffs as illegal under USMCA/WTO rules).

4. Domestic Subsidies (Bailouts for auto, dairy, and lumber sectors).

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🇺🇸 U.S. Political Risks for Trump

• Blue-State Backlash: New England (reliant on Canadian hydro) and auto states (Michigan, Ohio) may revolt.

• Inflation Fears: Tariffs = higher consumer prices, undermining Trump’s economic message.

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🔮 What’s Next?

• July-August 2025: Canada announces counter-tariffs (likely targeting bourbon, oranges, EVs).

• Fall 2025: Auto giants (GM, Ford) lobby Trump to soften stance.

• 2026: If no deal, USMCA collapse risk grows—could trigger a full-blown trade war.

Your move, Canada!

Mark Carney is like… What do I do, my dear little Great White Nose: Dig, Baby, Dig & Pick, Baby Pick,