US suspends all trade negotiations with Canada

28 June 2025 04:00

The United States has decided to immediately suspend all trade negotiations with Canada and impose a new import duty on Canadian products. This was announced by US President Donald Trump on Truth Social, "Komersant Ukrainian" reports

The reason for this step was Canada’s introduction of a tax on digital services, which, according to Trump, is aimed at American technology companies.

According to him, Canada “just announced a digital tax on our American digital companies.”

“Given this outrageous tax, we are immediately suspending all trade negotiations with Canada. Within seven days, we will notify Canada of the duty they will pay to do business with the United States,” Trump said.

According to the American president, Canadians are “copying the European Union,” which has done the same and is now also negotiating with the United States.

It is worth noting that the trade tension between the US and Canada has been going on for years. Earlier, Donald Trump repeatedly imposed higher tariffs on Canadian goods, and Canada responded with mirror measures.

Trump’s trade wars

Donald Trump’s administration has imposed trade restrictions on China, Mexico, and Canada, the three largest trading partners of the United States. The US government imposed an import duty of 25% of the value of goods from Canada and Mexico, and a 20% duty on goods from China. An additional duty is imposed on Canadian energy products.

These measures have caused concern among U.S. companies that depend on metals imports from Canada and Mexico. They are expected to look for alternative sources of supply, in particular in the Middle East, India, Chile and Peru, which could lead to higher prices for aluminum and copper in the United States.

In addition, Canadian consumers reacted to the imposition of duties by boycotting American goods, canceling trips to the United States and refusing to buy American alcohol.

Economists warn that such trade disputes could slow global economic growth and cause inflation. Stock markets in the Gulf countries earlier reacted with a decline due to fears of a possible trade conflict. The cryptocurrency market also collapsed earlier.

All tariffs imposed by Trump in 2025

1. Tariffs on steel and aluminum

Announced: february 10, 2025.
Entered into force: march 12, 2025.
Rate: 25% on all imported steel and aluminum products.
Additional: Trump said that all duty-free steel products must be “melted and cast” in the United States, and aluminum products must be “smelted and cast.”

2. Tariffs on Chinese goods

Announced: february 1, 2025.
Entered into force: february 4, 2025 (10%), March 4, 2025 (increased to 20%).
Rate: 20% on all Chinese goods.

3. Tariffs on goods from Canada

Announced: february 1, 2025.
Entered into force: march 4, 2025.
Rate: 25% on all Canadian goods (exception: 10% on energy).
Adjustments: on March 6, tariffs on USMCA-compliant goods were postponed until April 2, 2025.

4. Tariffs on goods from Mexico

Announced: february 1, 2025.
Entered into force: march 4, 2025.
Rate: 25% on all Mexican goods.
Adjustments: on March 6, tariffs on USMCA-compliant goods were postponed until April 2, 2025.

5. Tariffs on Canadian oil, gas and potash fertilizers (potash)

Announced: february 1, 2025.
Entered into force: march 4, 2025.
Rate: 10%.
Adjustments: on March 6, the potash tariff was reduced to 10% and all energy tariffs were postponed until April 2, 2025.

6. De minimis suspension for China, Mexico and Canada

Announced: February 2025.
Action: Duty exemptions on low-value imported goods are temporarily canceled.
Adjustments: on February 7, 2025, Trump reinstated the exemptions.

7. Plan to implement “recycle tariffs”

Announced: february 13, 2025
Expected launch: april 2, 2025
What it means: calculation of duties based on the trade balance and tax rates of the US partners

8. Tariffs on copper

Announced: march 12, 2025.
Expected implementation: in the nearest future.

9. Threats of tariffs on the EU

Announced: february 2, 2025.
Expected implementation: uncertain.
Possible measures: 200% tariff on alcohol from the EU.

10. Investigation into Canadian timber

Announced: march 1, 2025.
Possibility of imposing tariffs due to the threat to US national security.

Tariffs of other countries in response to Trump’s policy

Canada

First round of tariffs

Announced: february 1, 2025.
Entered into force: march 4, 2025.
Rate: 25%.
Amount: uSD 20.8 billion. U.S. dollars (C$30 billion).
Adjustments: on March 6, Canada postponed the expansion of tariffs to 86 billion dollars. The tariffs were postponed to USD 86 billion (CAD 125 billion).

Second round of tariffs