Canadian PM’s response to Trump’s accusations exposed.
Donald Trump just torched the diplomatic rulebook — again — after branding Canada’s latest tax move a “blatant attack” on the United States.
History between U.S and Canada profiled.
Despite being each other’s top trade partners, the two nations have never been afraid to bicker — especially over lumber, dairy, and softwood tariffs.
During his first term, Trump tore up NAFTA, calling it a disaster, before forcing a renegotiation that led to the USMCA — a deal still hanging by a thread.
At a tense G7 summit in Quebec, Trump stormed out, slammed Canada’s then-PM Justin Trudeau, and briefly threatened to kill all trade deals.
Mark Carney, former head of the Bank of Canada and Bank of England, brought global economic cred when he stepped into Canadian politics in 2023.
Despite having no elected office experience, Carney rode a wave of technocratic appeal and beat out Trudeau’s successor in a political upset.
Known for his cool demeanor, Carney initially maintained a calm, almost corporate rapport with Trump — keeping tempers in check through the spring.
Having helped steer the U.K. through Brexit and the 2008 crisis, Carney is no stranger to high-stakes, high-pressure diplomacy.
Just months into his leadership, Carney is now at the center of the most dramatic U.S.-Canada clash in years — and holding his ground.
Trump’s shocking move revealed.
The president announced the U.S. is walking away from trade negotiations, effective immediately, over Canada’s decision to tax U.S. tech giants.
At the heart of the firestorm? A 3% digital services tax that’s got Amazon, Meta, Google, and Airbnb facing a retroactive bill stretching back to 2022.
The tax hits when a tech firm pulls in more than $14.6 million a year from Canadian users — and it’s expected to raise roughly $2 billion.
Officials in Washington reportedly warned that the tax could violate trade agreements and hurt American businesses operating abroad.
By mid-June, a group of Republican lawmakers demanded Trump take immediate action, calling the tax “unprecedented” and “retroactive.”
Lawmakers warned this move could embolden other countries to impose their own digital service taxes on American companies.
Trump’s viral rant unveiled.
On June 27, the situation boiled over when Trump took to Truth Social and unleashed a signature scorched-earth post.
Trump fumed that Canada has been unfair for years — especially citing long-standing dairy tariffs that hit American farmers hard.
In all caps, Trump accused Canada of launching a “blatant attack” on the United States through the new digital tax.
He didn’t stop at Canada — Trump said they were “obviously copying the European Union,” who he claims has treated the U.S. “unbelievably bad.”
In the same Truth Social post, Trump dropped the hammer: “We are hereby terminating ALL discussions on Trade with Canada, effective immediately.”
Trump ended his post with a threat — Canada would soon learn what tariffs it must pay to keep doing business with the U.S.
PM Carney’s response confirmed.
When asked to respond, PM Carney was blunt but composed, refusing to be baited into Trump’s drama.
Hours later, speaking to reporters, Trump doubled down: “Economically, we have such power over Canada. It’s not going to work out well for them.”
He predicted Canada will “remove the tax,” but added, “It doesn’t matter to me,” shrugging off any diplomatic consequence.
Experts say Carney’s calm response is intentional — aiming to appear stable as Trump ramps up the chaos.
The digital services tax had been in the works before Carney took office, but he moved ahead with it — knowing full well it could ignite tensions.
Carney argued that Big Tech should contribute to the Canadian economy, especially when profiting off local users — even if it meant crossing Washington.
Will this escalate?
As of now, the major tech companies affected have not publicly responded to the brewing international feud.
Carney’s office has not issued a counter-threat — appearing focused on damage control rather than escalation.
The current U.S. administration hasn’t commented, letting Trump dominate headlines with zero pushback.
Financial analysts warn that a tariff war with Canada could ripple through tech stocks and cross-border commerce.
As of now, Trump has frozen trade negotiations, promised incoming tariffs, and sparked the most serious U.S.-Canada feud in years — just days before Canada’s tax kicks in.