NEWS: Canadian Prime Minister issued blunt response after Trump accuses them of ‘blatant attack’

Just as U.S.–Canada relations appeared to stabilize following months of quiet diplomacy, former President Donald Trump once again threw a wrench into the fragile dynamic. On June 27, in a forceful post on his social media platform, Truth Social, Trump blasted Canada’s newly implemented 3% digital services tax, labeling it a “blatant attack” on American innovation and free-market enterprise. The tax, which applies retroactively to 2022, is expected to cost major U.S. tech giants — including Amazon, Google, and Meta — an estimated $2 billion by the end of the month.

“This is nothing more than a cash grab, plain and simple,” Trump declared. “Canada continues to be a difficult and unfair trading partner, and until they come to their senses, we are suspending all trade negotiations effective immediately.” He further threatened sweeping new tariffs on Canadian goods, warning Ottawa that the U.S. would not tolerate “hostile economic actions disguised as policy.”

The announcement sent shockwaves through diplomatic and economic circles, especially given that Trump, while no longer in office, maintains considerable influence within the Republican Party and is the presumptive GOP nominee for the 2024 presidential election. His remarks prompted immediate concern in both Washington and Ottawa, as many feared a return to the kind of turbulent U.S.–Canada relations seen during his first term in office, when tariff battles and trade renegotiations dominated headlines.

Canadian Prime Minister Mark Carney, newly elected and navigating his first major international flare-up, responded with measured restraint.

“We’ll continue to negotiate in the best interests of Canadians,” he said in a public address, attempting to downplay the growing rift and underscore Canada’s commitment to multilateral cooperation.

However, Trump wasn’t finished. In a follow-up post later that evening, he doubled down, asserting that “the United States holds the economic cards” and predicted that Canada would ultimately fold under the pressure. “They need us more than we need them,” Trump claimed, referencing the deep imbalance in trade volume and dependency.

In Washington, several Republican lawmakers echoed Trump’s sentiment, calling the tax “unprecedented, retroactive, and clearly targeted” at U.S.-based corporations. While some moderate Democrats urged patience and ongoing negotiations, others expressed frustration over what they viewed as an erosion of U.S. tech leadership in the global digital economy.

Trump also took the opportunity to criticize European nations, many of which have implemented similar digital service taxes, arguing that only the U.S. should have the right to tax its own companies. “We built the platforms — we take the risks, we innovate. No other country should profit from our success through taxation,” he said.

Tensions peaked following what insiders described as a “tense and unproductive” phone call between Trump and Carney. Within 24 hours, Canada announced a temporary pause on implementing the tax, just days before payments were due. The surprise reversal came amid growing fears of an economic fallout and loss of investor confidence, especially in cross-border digital trade.

In a carefully worded statement, Carney clarified that the pause was “in alignment with ongoing negotiations and a coordinated approach among G7 nations”, with a target resolution date set ahead of the July 2025 G7 deadline for global digital taxation frameworks.

While some analysts see Canada’s move as a diplomatic retreat, others frame it as a calculated delay aimed at preserving broader trade interests while still keeping the option of future taxation on the table. Meanwhile, U.S. tech companies welcomed the pause, with Meta and Amazon issuing statements praising the “commitment to dialogue and fair treatment.”

However, critics of Trump argue that his aggressive posture risks alienating allies and further destabilizing international cooperation in the digital economy. “Bullying smaller allies isn’t leadership—it’s shortsighted and dangerous,” said one former U.S. trade official.

As both sides prepare for further negotiations, the incident serves as yet another reminder of how personalities, politics, and power continue to shape modern global trade. Whether this marks a temporary flare-up or the beginning of a longer rift will likely depend on the upcoming G7 negotiations—and the outcome of the 2024 U.S. presidential election.