Canada and U. S. Trade Talks Back On: What Changed?
Canada and the U.S. are back at the negotiating table. Why? Because Canada decided to drop a proposed tax on big U.S. tech companies. This tax, which would have affected giants like Amazon, Google, and Meta, was set to start soon but was abandoned.
Trump's Reaction and Trade Talks
President Trump was not happy about the tax, calling it unfair to the U.S. He even halted all trade talks with Canada over the issue. But after Canada reversed its decision, talks have resumed—a big win for the U.S. and big tech.
Key Issues in Trade Negotiations
The two countries have a lot to discuss, including:
- High taxes on goods like steel, aluminum, and cars
- Extra taxes on imports, with Canada and Mexico partially protected
- Many goods still facing high costs
Mixed Reactions to Canada's Decision
Some believe Canada gave in too easily and should have stood up to Trump. Others argue it was a smart move to keep the relationship strong.
Next Steps and Future Talks
Canada's finance minister stated that dropping the tax will help talks move forward. He discussed the change with the U.S. Treasury secretary, and Trump and Canada's prime minister also spoke, agreeing to continue negotiations.
This isn't the first time Trump has disrupted trade talks. He has been tough on Canada since returning to office, even joking about making Canada a U.S. state. But now, they're working to resolve issues.
The goal is to finalize a new deal by next year, but many challenges remain.