In a shocking escalation of tensions, President Trump has erupted following Canada’s enactment of a contentious digital services tax targeting major U.S. tech giants. The new law, Bill C96, imposes a 3% levy on digital revenues generated by companies like Meta, Alphabet, and Amazon from Canadian users, sending ripples through financial markets and sparking an immediate backlash from Washington.

As news of the tax broke, tech stocks plummeted, with the trio losing nearly 2% of their market value in just one trading hour, erasing tens of billions in market capitalization. In a furious response, Trump abruptly halted trade discussions with Canada, launching a Section 301 investigation and threatening punitive tariffs of up to 50% on Canadian steel and aluminum. This move is being framed as a direct assault on American innovation, while Canada defends the tax as a necessary step to assert its digital sovereignty.

The stakes are astronomical. This isn’t merely about a tax; it’s a fierce battle over control of the digital economy, artificial intelligence development, and crucial defense supply chains. The implications stretch far beyond tech earnings—potential tariffs could hike costs for consumers and disrupt the North American supply chain, impacting everything from car prices to cloud services.

With just seven days to act, Ottawa’s refusal to retract the tax could trigger a trade war that redefines international relations in the digital age. The financial community is on edge, watching as the deadline looms. Mark Carney, Canada’s Prime Minister, remains resolute, framing the levy as a shield against foreign data dominance, while Trump’s administration prepares for a titanic clash that could reshape the future of North American trade.

As both sides dig in, the world is left wondering: will diplomacy prevail, or is a full-blown economic war on the horizon? The clock is ticking, and the next move could change everything. Stay tuned for updates as this story continues to unfold.