Donald Trump announced plans to impose tariffs on Canada and France in response to their digital services taxes on US technology companies. The former president criticised the taxes as unfair, arguing that only the United States should have the right to tax its own firms.

Canada began implementing the levy last year to ensure companies like Alphabet and Amazon contribute fairly despite often booking profits in low-tax jurisdictions.

Trump directed his economic team to develop a strategy for reciprocal tariffs against any country imposing duties on US imports. A White House fact sheet claimed that Canada and France each collect over$500 million annually from US firms through digital taxes, costing American businesses more than$2 billion per year. The statement argued that retaliatory tariffs would restore fairness to global trade.

The digital tax dispute has been a long-standing issue, with Washington previously challenging Canada's approach under Joe Biden's administration.

The United States had sought trade dispute consultations, calling the tax discriminatory. The office of Canadian Prime Minister Justin Trudeau has not yet commented on Trump's latest tariff proposal.