Seven-Day Ultimatum: Trump Sets Clock Ticking on Canada Tariffs

President Trump has issued a stern seven-day ultimatum to Canada following his decision to terminate trade negotiations over the country’s digital services tax. The deadline creates immediate pressure on both governments to find a resolution or face the prospect of escalating economic warfare between the traditionally allied nations.
The ultimatum represents a significant escalation in what began as a dispute over digital taxation policy but has evolved into a broader confrontation over trade practices. Trump’s threat to announce specific tariff measures within a week demonstrates his administration’s commitment to swift retaliation when it perceives unfair treatment of American businesses.
Canadian Prime Minister Mark Carney now faces a difficult choice between maintaining his government’s digital tax policy and preserving the crucial economic relationship with the United States. The $3 billion tax on American technology companies, including Alphabet, Amazon, and Meta, was designed to ensure these firms contribute their fair share to Canadian public finances, but the political cost may prove too high.
The seven-day timeline coincides with the Monday deadline for the first digital tax payments, creating a complex scheduling challenge for all parties involved. Trump’s reference to longstanding grievances about Canadian agricultural tariffs, including 400% levies on dairy products, suggests that any resolution will need to address broader trade issues beyond the immediate digital tax controversy.