In a shocking escalation of trade tensions, Canada is poised to destroy thousands of U.S. iPhones, valued at an astonishing $20 billion. This dramatic move comes after former President Donald Trump announced a halt to all trade negotiations with Ottawa, threatening to impose severe tariffs on Canadian goods within a week. The catalyst for this turmoil? Canada’s newly implemented digital services tax, a 3% levy targeting major tech giants like Amazon, Google, and Meta, which Trump has labeled a “blatant assault” on U.S. interests.

The digital services tax, effective June 30, 2025, aims to level the playing field for Canadian businesses, but U.S. officials perceive it as a direct attack on American economic dominance. As tensions flare, markets are reacting with volatility. U.S. stock indexes initially dipped but rebounded to record highs, while the Canadian market suffered losses, particularly in resource sectors. This instability has investors on edge, fearing a full-blown trade war that could cripple both economies.

With Trump’s ultimatum looming, industries across North America are bracing for impact. Key sectors, including dairy and aluminum, are at risk as Trump’s administration prepares to announce specific tariffs. Meanwhile, Canada remains steadfast, asserting its right to implement the tax as a matter of national pride and economic fairness. Prime Minister Mark Carney’s government has signaled it will not back down, despite pressure from business leaders urging a rapid resolution.

The stakes have never been higher. A trade war could disrupt supply chains and lead to job losses on both sides of the border. As Canada and the U.S. stand on the brink of a potentially catastrophic economic conflict, the world watches closely. Will Trump follow through on his threats, or is this merely another chapter in a long history of trade disputes? The clock is ticking, and the outcome could reshape international relations and global trade dynamics forever. Stay tuned as this story unfolds.