Trump Terminates Trade Talks With Canada Over Digital Tax

Donald Trump has taken a firm stance against Canada, potentially escalating tensions over the weekend. This latest move is partly linked to tariff discussions with the European Union, indicating a warning to both the EU and Canada. Speculations arise about how the prices of cryptocurrencies such as SOL, BNB, LINK, and AVAX may fluctuate during the weekend.

Last week, tensions with Iran shook the markets, and now, with the looming deadline for tariffs and the confrontation with Canada, further volatility is expected. Although the extent of the impact is uncertain, Trump is known for demonstrating his resolve, and after U.S. stocks reached new all-time highs, he might issue stronger statements over the weekend. Such developments could lead to a downturn in cryptocurrency prices.

Announcements from Canada and the EU throughout the weekend will significantly influence price charts. SOL Coin, which dropped to $126 on June 22, could not reclaim the $148 mark during the ceasefire rally. In a positive scenario, it is anticipated that the price will exceed this crucial threshold, ascend to $162, and form a peak near $168 over the weekend. However, unfavorable news about tariffs may push the price back to the $134-$126 range. In cases of excessive selling, the bottom could be at $112.

BNB remains relatively strong amid heightened volatility and, despite attempting to breach $650, could fall back to the $627-$611 range in a bearish scenario. With favorable news, a target of $676 could be envisioned.

The threshold for LINK Coin is $12.7, and if it closes below this, a test of $11.8 is possible over the weekend. Despite a Mastercard partnership, LINK Coin has not leveraged this due to general market negativity. The optimistic target zones include $14.5 and $15.3. Although the direction is not yet definitive, Trump’s latest remarks seem to favor the bears.

AVAX has not met expectations this year and failed to surpass $18.5 in its latest attempt. If weekend announcements lack volume, they may fuel declines testing $16.2. Meanwhile, BTC appears to have weathered the initial shock of Canada’s announcements, stabilizing at $107,100 for now.

President Donald Trump has abruptly terminated all trade discussions with Canada, citing the country's implementation of a digital services tax (DST) that targets large technology companies, many of which are American. The tax, set to take effect this weekend, imposes a 3 percent levy on the Canadian revenue of digital companies with global revenues exceeding C$20 million. This levy applies to profits from online advertising, social media, digital marketplaces, and the sale or licensing of user data. The Canadian government has defended this measure as a means to ensure that tech giants contribute their fair share of taxes on profits generated within Canada.

Trump, however, has strongly opposed the tax, characterizing it as "a direct and blatant attack on our Country." He argued that the tax unfairly targets U.S. technology firms such as Meta, Apple, Google, Amazon, and Microsoft. In response, Trump announced the immediate termination of all trade discussions with Canada and threatened to impose new tariffs on Canadian goods within the next seven days. This move escalates tensions between the two major trading partners, with potential impacts on a wide range of Canadian exports, from manufactured goods to agricultural products.

The dispute over the digital services tax highlights broader global tensions regarding the taxation of digital services. The United States has consistently opposed unilateral digital taxes, arguing that they disproportionately affect American companies and should be addressed through multilateral agreements. Trump accused Canada of "copying the European Union," which has also implemented similar taxes and is currently in discussions with the U.S. over the issue.

The investing community is closely monitoring the situation, as new tariffs could disrupt supply chains and increase costs for companies operating across the U.S.-Canada border. Technology firms, in particular, are assessing the potential impact of the Canadian tax and any U.S. retaliatory measures on their North American operations. While Canadian Prime Minister's office has not yet commented, officials had previously hoped to reach a new economic and security agreement with the U.S. by mid-July, including the potential lifting of existing tariffs. Those talks are now on hold indefinitely.

Markets reacted harshly to the news, with the S&P 500 initially up over 0.5% for the day but later pulling back into the red. Investors were likely hoping the ongoing trade war with major U.S. trade partners was coming to an end. This development gives investors reason to doubt that the trade tensions will resolve anytime soon and could signal more retaliatory tariffs towards Canada in the coming weeks.

As both governments brace for the next phase of the dispute, the outcome will likely influence not only bilateral trade but also the broader debate over how to tax digital commerce in a globalized economy. For now, businesses on both sides of the border face renewed uncertainty as they await details on the forthcoming U.S. tariffs and any potential Canadian response. The abrupt end to trade negotiations marks a significant setback in U.S.-Canada economic relations, with Canada being the United States’ second-largest trading partner, with hundreds of billions of dollars in goods and services exchanged annually. The new tariffs, which are expected to be announced within a week, could impact a wide range of Canadian exports, from manufactured goods to agricultural products, and may trigger retaliatory measures from Ottawa.