Canada Slaps Quota On U.S. Steel Imports After Trump Scuttles Trade Talks

President Donald Trump said that he had terminated trade discussions with Canada, citing an incoming Canadian tax on tech companies, including those based in the U.S.

The imposition of a quota on certain steel imports and a 50% surcharge on imports that exceed the quota is seen as a form of retaliation by the Canadian government. I Photo: United States Steel Corporation

Hours later, Canada retaliated by imposing a quota on certain steel imports and a 50% surcharge on imports that exceed the quota, Rob Wile reported for NBC News.

Canada’s finance minister said the government was acting to protect its industry from “unjust U.S. tariffs.” The government added that it “remains prepared to take additional steps as needed.”

Last week, Canada’s finance minister said he would not delay implementation of the digital services tax — which applies to any tech company earning more than $15 million from Canadian internet users — even as U.S. trade talks continued.

A lobbying group for several tech giants said the tax, which is retroactive to 2022, would cost U.S. companies as much as $3 billion. Those payments are due beginning June 30.

Trump’s post cut short what had been a relatively calm period of trade-related announcements — a stretch that had helped markets rebound to the all-time highs seen in February.

Shortly after Trump’s post went live, the S&P 500 and Nasdaq indices briefly dipped into negative territory but rallied later in the afternoon to close at new all-time highs.