TRUMP HALTS TRADE TALKS OVER TECH FIRMS TAX

US PRESIDENT Donald Trump said he is suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called "a direct and blatant attack on our country".

- MICHELLE L PRICE & ROB GILLIES

Mr Trump, in a post on his social media network, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax is set to go into effect tomorrow.

"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," Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January.

Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state.

Canadian Prime Minister Mark Carney said on Friday that his country would "continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation".

Mr Trump later said he expects that Canada will remove the tax.