In a significant move, Trump announced the suspension of trade talks with Canada and the implementation of new tariffs on Canadian goods, citing Canada's digital services tax as a 'direct and blatant attack on our country.'

As the self-imposed 90-day deadline for negotiating trade deals approaches its end on July 9, Trump has already secured agreements with the United Kingdom and a truce with China.

The relationship between the U.S. and Canada has been increasingly strained, with Trump suggesting that Canada might consider becoming the 51st state, highlighting ongoing tensions in trade discussions.

Despite the heightened tensions, experts believe there is still potential for a trade agreement if negotiations can resume constructively, as both nations have strong incentives to reach a resolution.

The interconnected economies of the U.S. and Canada create a compelling reason for both countries to seek a resolution, despite the current discord.

India has emerged as a promising candidate for finalizing a trade deal, following recent meetings between Indian trade officials and their U.S. counterparts.

Economics professor Julian Karaguesian argued that the digital services tax is a domestic policy issue rather than a trade issue, suggesting it may be strategically used in negotiations.

During a press briefing, Trump indicated flexibility regarding the July 9 deadline for raising 'reciprocal' tariffs, suggesting it could be adjusted as needed.

Trump stated that letters notifying countries of their new tariff obligations would be sent out soon, with tariffs potentially ranging from 10% to 50% based on each country's treatment of the U.S.

The new tariffs will be cumulative, meaning U.S. imports will incur a universal 10% tariff along with specific reciprocal tariffs for each country.

Trump made these announcements during an interview on Fox News' 'Sunday Morning Futures,' emphasizing the administration's aggressive stance on trade.

In response to U.S. pressure, Canadian Finance Minister François-Philippe Champagne affirmed that Canada would continue with the digital services tax, indicating a firm stance on the matter.