Canada intends to achieve the removal of US tariffs by continuing “difficult” trade talks with the United States, despite President Donald Trump’s threats to completely cut off dialogue. This is in the interests of Canadians, said Prime Minister Mark Carney, as quoted by CBC.
“We will continue to conduct these difficult negotiations in the best interests of Canadians,” the prime minister said.
However, as reported by the television company, he did not specify whether Ottawa is ready to make concessions.
Trump previously said that the United States was ending trade talks with Canada on tariffs due to Ottawa’s introduction of a new service tax for American tech companies.
“Canada is a very difficult country to trade with,” the American leader wrote on his social network Truth Social.
Trump also said that his administration will determine a new tariff regime for Canada within seven days.
A new digital services tax for major international tech companies like Amazon, Google, Uber and Airbnb will come into effect in Canada on June 30. The rate will be 3% of revenues received from Canadian users for 2022. The tax will be applied retroactively, with final payments estimated at $2 billion. Finance Minister Francois-Philippe Champagne said the law had been approved by Parliament and would be applied despite trade pressure from the United States. Earlier, the Donald Trump administration imposed 25% tariffs on Canadian steel, aluminum and cars, as well as 10% on energy and fertilizers. Ottawa responded with mirror 25% duties on a range of American goods, aluminum and steel products, and cars imported from the United States.