Source: cbsnews.com
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Summary
President Trump abruptly ended U.S.-Canada trade talks, citing Canada’s 3% digital services tax on major tech firms and vowing to set new tariffs within a week. The move intensifies an ongoing tariff tit-for-tat and injects fresh uncertainty into already strained cross-border supply chains. While Canadian Prime Minister Mark Carney and business groups characterize the announcement as a negotiating tactic and signal talks could resume, the rupture lands amid broader delays in the administration’s trade agenda and looming deadlines that may slip into late summer. Economists warn escalating tariffs and policy ambiguity could raise prices, invite retaliation, and aggravate softening economic indicators despite recent improvements in market sentiment.
Key Points
- Trump ends U.S.-Canada trade talks over Canada’s 3% digital services tax.
- New U.S. tariffs on Canada are promised within a week, escalating tensions.
- Canadian leaders and business groups see the move as pressure tactics, not final.
- Broader U.S. trade deals are delayed, extending uncertainty and tariff risks.
- Economists warn higher tariffs could worsen inflation and slow growth.