Trade negotiations took a dramatic turn this week when U.S. President Trump abruptly ended discussions with Canada. The decision came after Canada announced a digital services tax targeting U.S. tech companies—an action Trump labeled a "blatant attack" that, according to him, prompted new tariffs within days.
Despite the pause with Canada, the EU says it's still confident that "some form of trade agreement" with the U.S. could be finalized by July 9. This upbeat outlook contrasts with the U.S. Treasury Secretary’s assessment, who thinks broader trade talks with multiple partners may stretch to Labor Day.
Key Takeaways:
- Canada–U.S. negotiations derailed after Canada adopted a digital services tax on American tech companies, prompting Trump to threaten tariffs.
- EU remains hopeful, optimistic about achieving a deal by a self-imposed July 9 deadline to avoid new tariffs.
- U.S. trade strategy evolving: Treasury Secretary signals ongoing talks with various countries, including China, UK, Japan, South Korea, and Vietnam, possibly through early September.
Implications for Your Business or Portfolio:
- Canada exporters face uncertainty and potential new duties on U.S. goods.
- European companies could benefit if the U.S.–EU pact launches quickly.
- Market volatility risk remains elevated while U.S. trade relationships stay uncertain.
Whether you're exporting to North America or supplying digital services, it’s time to track progress—and risks—across all these shifting trade conversations.
