TERRACE, BC – The President of the United States announced Friday he is “terminating” all trade discussions with Canada and will announce new tariffs within a week, a move that creates immediate and severe uncertainty for the Skeena region’s key industries.
The sudden announcement was made on the President’s social media platform. The White House later confirmed the decision, blaming Canada’s new Digital Services Tax (DST), which goes into effect tomorrow, Saturday, June 28.
“We have just been informed that Canada, a very difficult Country to TRADE with … has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,” the President wrote.
This escalation in trade tensions is of critical concern to Northwest B.C., which has already been impacted by a recent doubling of U.S. tariffs on Canadian aluminum, directly affecting the Rio Tinto smelter in Kitimat. The threat of new, broader tariffs could further impact the region’s forestry sector and operations at the Port of Prince Rupert.
A top White House economic advisor called Canada’s new tax “almost criminal” and demanded its removal. The 3% tax applies to revenue that large digital companies like Google and Amazon make from their Canadian users.
In Ottawa, the Prime Minister appeared to be caught off guard by the announcement but maintained a calm approach. “We’ll continue to conduct these complex negotiations in the best interest of Canadians,” he told reporters Friday afternoon.
The move throws into jeopardy a previous agreement between the two leaders to secure a new economic and security deal by mid-July. For businesses and workers in the Skeena region, this new trade dispute brings a fresh wave of economic anxiety.
