Trump Halts U.S.-Canada Trade Talks Amid Escalating Tensions

President Donald Trump announced Friday that the United States “will not restart” trade discussions with Canada, marking a sharp escalation in tensions between the two nations despite their deep economic ties under the United States-Mexico-Canada Agreement (USMCA). The statement came as negotiations over disputes remained stagnant, with Trump offering no conditions for resuming talks or outlining further actions.

The remark highlights a hardened stance toward Canada, a key trading partner, amid ongoing disagreements over trade practices. While USMCA governs most cross-border commerce, side discussions between the U.S. and Canadian governments have historically addressed implementation issues. Trump’s declaration suggests these talks are now frozen.

Recent tensions include Canada’s imposition of a digital services tax targeting American tech giants like Google, Amazon, and Meta, which the U.S. claims unfairly disadvantages American companies. Ottawa has defended the levy as a measure to ensure fair taxation of multinational corporations.

Trade relations have deteriorated since summer when the U.S. raised concerns over Canadian subsidies in the electric-vehicle and steel sectors. Talks were expected to resume this fall, but Trump’s comments Friday appear to have scuttled that possibility.

Earlier in the week, Trump threatened an additional 10% tariff on Canadian goods following Ontario’s broadcast of a television ad featuring audio of former President Ronald Reagan criticizing tariffs. “The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their ‘rescue’ on Tariffs that they have used for years to hurt the United States,” Trump said on Truth Social. He claimed the move was a response to Canada’s alleged misrepresentation and hostile actions.