Following Trump’s accusations of “blatant attack,” the Canadian prime minister responded bluntly

Two of the closest pals in the world have erupted in a fresh verbal battle just when it appeared that everything had calmed down. As President Donald Trump snaps, accusing Canada of a “blatant attack,” tensions are erupting once more.

Up until recently, Canadian Prime Minister Mark Carney, 60, and U.S. President Donald Trump, 79, who are both renowned for their direct, no-nonsense approaches, appeared to respect one another. According to reports, Trump was pleased by Carney’s prior work as a leading banker. However, that diplomatic peace can be breaking down right now, and quickly.

The catalyst? Relations between the United States and Canada have been severely damaged by a contentious new tax. Large tech companies like Amazon, Meta, Google, Uber, and Airbnb will be subject to a 3% digital services tax in Canada, which will go into effect in 2022.

By the end of this month, American IT companies may have to pay a staggering $2 billion in taxes, according to NBC News. If the business makes more than $14.6 million from Canadian users in a given calendar year, the tax is due.

It should come as no surprise that Trump took it seriously. On June 27, he made the following vehement post on Truth Social:

“We recently learned that Canada, a very challenging country to trade with—including the fact that they have been imposing 400% tariffs on dairy products on our farmers for years—is imposing a Digital Services Tax on our American technology companies. This is a clear and obvious attack on our nation.”

Evidently, they are imitating the European Union, which has also taken this action and is currently in negotiation with us. With immediate effect, we are ending all trade conversations with Canada due to this heinous tax. Within the next seven days, we will inform Canada of the tariff they must pay in order to conduct business with the United States of America. I appreciate you taking the time to look into this.

Trump’s remarks were a significant change and hinted at a possible trade halt with one of the US’s biggest trading partners. According to the U.S. commerce Representative, U.S.-Canada commerce exceeded $762 billion in just the previous year.

Carney remained unflinching when questioned about Trump’s severe response, saying: “In the best interests of Canadians, we will continue to engage in these intricate negotiations.” Later, Trump intensified his remarks to White House reporters, cautioning: “We have a lot of economic influence on Canada. We prefer not to use it. For Canada, it won’t work out well. They made a stupid decision.

He responded as follows when asked if there was a possibility to resume talks:

“I don’t care,” he said, adding that Canada could “remove the tax” and that it will eventually do so. The escalation comes as a number of U.S. politicians urged Trump to take swift action in response to what they described as a “unprecedented, retroactive tax.” Lawmakers cautioned that allowing Canada to move on with this historic, retroactive tax on American companies would give the rest of the globe the go-ahead to carry out similar discriminating cash grabs that target our companies, employees, and tax base.

Trump also took advantage of the occasion to attack Europe, which has implemented comparable digital taxation measures. “They have treated us in an unimaginable manner. According to Trump, previous presidents have treated them horribly.

I understand why they’re being so kind to me. We have the cards, and I am familiar with the system. They have mistreated us, we have many more cards than they have, and they are now approaching us. He went on to say:

It appears like Trump might have prevailed in this round of the tax conflict between the United States and Canada. Following Trump’s Friday post, a series of events transpired that culminated in a crucial phone conversation between Trump and Carney on Sunday evening. One day before the first tax payments were due, Ottawa declared that same evening that it was repealing its contentious digital services tax “in anticipation” of a favorable trade deal with the United States.

Canadian Prime Minister Mark Carney said in the statement that today’s announcement will help resume talks toward the July 21, 2025, deadline that was established at last month’s G7 Leaders’ Summit in Kananaskis.

“Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” said Prime Minister Mark Carney of Canada.