WASHINGTON: President Donald Trump announced Friday that the United States is ending trade discussions with Canada over the country's digital services tax on technology companies, Anadolu Ajansi (AA) reported.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.

"We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period," Trump said on Truth Social.

Trump said the US was informed that Canada is putting a digital services tax on American technology companies, "which is a direct and blatant attack on our Country."

"They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also," he added.

Trump’s announcement throws a new obstacle into the stalled trade negotiations between the two nations, which have been locked in a tit-for-tat tariff battle for months, despite recent signs of progress towards a potential agreement. -  Bernama-Anadolu