In a shocking turn of events, President Donald Trump has announced the immediate termination of trade talks with Canada, citing the country’s controversial digital services tax as a “direct and blatant attack” on the United States. The announcement comes as tensions between the two nations escalate, with Trump vowing to impose tariffs on Canadian goods unless the tax is rescinded.

The digital services tax, which targets major tech firms like Amazon and Google, has been a point of contention for months. Trump claims it undermines American businesses and has demanded its removal as a precondition for any further negotiations. Canadian Prime Minister Mark Carney, however, remains steadfast, insisting that Canada will continue to negotiate in the best interests of its citizens.

This dramatic shift in diplomatic relations raises alarms across both countries, particularly given the economic implications. With the U.S. economy heavily intertwined with Canada’s, the prospect of renewed tariffs threatens to destabilize trade relations that have been in place for decades. Experts warn that the Canadian economy could face severe repercussions if the U.S. follows through on its threat to impose tariffs, which could reach as high as 400% on certain goods.

As the world watches, the stakes have never been higher. Trump’s ultimatum leaves Canada with little room to maneuver, and the 30-day deadline he imposed looms ominously. Will Canada capitulate to U.S. demands, or will it stand firm in the face of economic pressure? The outcome of this high-stakes standoff could reshape the future of North American trade and diplomacy.

Stay tuned as this story develops, with both nations bracing for what could be a tumultuous economic fallout.