Trump cancels trade talks with Canada

So much for that. CAD down sharply.

Trump’s message:

We have just been informed that Canada, a very difficult Country to
TRADE with, including the fact that they have charged our Farmers as
much as 400% Tariffs, for years, on Dairy Products, 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. They are
obviously copying the European Union, which has done the same thing,
and is currently under discussion with us, also. Based on this egregious
Tax, we are hereby terminating ALL discussions on Trade with Canada,
effective immediately. We will let Canada know the Tariff that they will
be paying to do business with the United States of America within the
next seven day period. Thank you for your attention to this matter!

Canada and the US had laid out at the start of last week a 30-day period to make a deal.

I imagine this is all theatre as Trump lays the groundwork for a deal. Canada is obviously prepared to drop this tax if the US drops tariffs.

This article was written by Adam Button at www.forexlive.com.