Ottawa, Jun 28: Canadian Prime Minister Mark Carney called the negotiations with the United States "complex" when he responded to the announcement of US President Donald Trump to terminate all trade talks with Canada with potential new tariffs.

"We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney said to local media. "It's a negotiation."

Trump announced Friday that the United States would terminate all trade talks with Canada due to Canada's digital services tax on US tech companies, Xinhua news agency reported.

Canada's digital services tax on American technology companies is a direct and blatant attack on the United States, said Trump in a post on social media.

Set to take effect on June 30, the digital services tax would have US companies like Amazon, Google, Meta, Uber and Airbnb pay a three percent levy on revenue from Canadian users.

Canada and the United States have been in negotiations to get Trump to lift the tariffs on Canadian goods, which have already led to major economic shrinking.

Canada's real gross domestic product edged down 0.1 per cent in April, according to Statistics Canada.

Transportation equipment manufacturing subsector was the largest contributor to the decline, coinciding with lower exports of passenger cars and light trucks as some motor vehicle manufacturers scaled back production amid uncertainty related to tariffs imposed on motor vehicle exports to the United States.

(IANS)

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