US President Donald Trump said he is ending trade negotiations with Canada in response to taxes affecting large American technology companies.

Trump said Ottawa would learn its new tariff rate within a week, AFP reported.

"Based on this outrageous tax, we are hereby terminating all trade negotiations with Canada, effective immediately," he wrote on his Truth Social platform.

The US president added that Canada will soon find out what fee it must pay to do business in the US. He also called his country's northern neighbor "very difficult" to trade with.

Washington has already expressed its disagreement with the Canadian digital services tax and last year requested negotiations to settle the dispute on this issue.

Although the digital services tax in Canada is not new — it was passed last year — US service providers "are required to pay several billion dollars in Canada" by June 30, the Computer and Communications Industry Association noted.

Although Canada was spared some of Trump's most sweeping tariffs, such as the 10% rate imposed in early April on nearly all trading partners, it faces a separate customs regime.

Since returning to the White House in January, Trump has also imposed high tariffs on imports of steel, aluminum, and automobiles.

Last week, Canada said it would adjust its 25% counter-tariffs on US steel and aluminum after Washington doubled tariffs on imports of the two metals to 50%—unless a trade agreement is reached within 30 days. | BGNES