NEW YORK/OTTAWA - US President Donald 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.

Canada has just announced that they are putting a digital services tax on American technology companies, which is a direct and blatant attack on the United States, said Trump in a post on social media.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," said Trump.

The United States would inform Canada the US tariffs that apply to Canadian businesses within the next seven days, according to Trump.

Canada is copying the European Union in introducing digital services tax, noted Trump.

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.

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Meanwhile, Canadian Prime Minister Mark Carney on Friday called the negotiations with the United States "complex" when he responded to the announcement of 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."

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 percent 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. 

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The United States is scrambling to wind up trade talks with a large number of trading partners as the self-imposed deadline of July 9 is approaching.

However, White House Press Secretary Karoline Leavitt on Thursday said Trump could extend the deadline.