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. The statement came amid prolonged disputes over economic policies and trade practices, signaling a breakdown in efforts to resolve ongoing conflicts under the U.S.-Mexico-Canada Agreement (USMCA).
Trump’s remarks did not specify conditions for resuming talks or outline additional measures the administration might take. The declaration highlights a hardened stance toward Canada, despite their shared economic integration through USMCA, which governs most cross-border trade. While side discussions between the U.S. and Canadian governments have historically addressed implementation issues, Trump’s comments suggest these conversations are now indefinitely suspended.
The fallout follows recent disagreements over Canada’s digital services tax, a policy targeting major American tech companies like Google, Amazon, and Meta. The U.S. has criticized the levy as discriminatory, arguing it violates USMCA principles. Canadian officials have defended the tax, stating it aims to ensure fair contributions from global tech giants.
Tensions also stem from U.S. concerns over Canadian subsidies in the electric-vehicle and steel sectors, which have strained relations since early summer. Earlier this week, Trump threatened an additional 10% tariff on Canadian goods following a televised ad by Ontario featuring audio of former President Ronald Reagan criticizing tariffs. The president accused Canada of exploiting U.S. trade policies and vowed to escalate measures against what he called “fraudulent” practices.
Ottawa has yet to issue a public response to Trump’s latest remarks, leaving the future of bilateral trade negotiations uncertain.
