Washington D.C: US President Donald Trump has stated that he will not halt trade negotiations with the European Union, even after abruptly cutting off talks with Canada over its new digital services tax targeting U.S. technology firms.
During an Oval Office event, when asked if the EU could face a similar fate to Canada, Trump affirmed his commitment to continuing discussions with the Europeans, though he acknowledged the talks have been “tough.” This contrasts sharply with his recent strong stance against Canada, where he called their digital tax a “direct and blatant attack on our country” and threatened new tariffs on Canadian goods within the next week. The Canadian tax, which levies a 3% charge on digital services revenue from Canadian users for large tech firms, is set to go into effect on Monday, June 30, and applies retroactively to 2022.
European Commission President Ursula von der Leyen confirmed that the EU had received the “latest U.S. document” for further negotiations on tariffs but did not disclose specific details of Washington’s demands. The U.S. and EU have engaged in several negotiating sessions in recent weeks as a critical July 9 deadline approaches.
This deadline, set by President Trump, signifies the end of a 90-day pause on global reciprocal tariffs. If a deal is not reached by then, the U.S. has threatened to impose significantly higher tariffs, potentially up to 50%, on key European exports, including cars and steel. While Trump has hinted at flexibility regarding the July 9 deadline, he has also reiterated his willingness to escalate trade barriers if talks stall. EU officials, including Luxembourg Prime Minister Luc Frieden, have expressed hope for energetic discussions to secure a deal, even if it means accepting some of Trump’s existing tariffs.
