Just when tensions seemed to ease, a fresh dispute erupted between two longtime allies. President Donald Trump lashed out, accusing Canada of a “blatant a**ack.” The conflict reignited trade tensions between the U.S. and Canada.
Leaders Known for Directness
Both leaders share a blunt style. Canadian Prime Minister Mark Carney, 60, and U.S. President Donald Trump, 79, once showed mutual respect. Trump admired Carney’s banking career. However, that calm appears to be unraveling rapidly.
The Trigger: Digital Services Tax
The spark? Canada’s new 3% digital services tax on major tech firms like Amazon, Meta, Google, Uber, and Airbnb. This tax is retroactive to 2022. According to NBC News, American tech giants face a $2 billion tax bill by month-end if they earn over $14.6 million from Canadian users annually.
Trump’s Fiery Response
Unsurprisingly, Trump reacted strongly. On June 27, he posted on Truth Social:
