The Nasdaq 100 (NDX) has reversed all of its gains after President Trump said that the U.S. terminated all trade talks with Canada, effective immediately. The technology index reached a new all-time high after rising as much as 0.69% on Friday before falling into negative territory.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
The end of discussions comes amid Canada’s choice to continue with its digital services tax on U.S. technology companies. The tax charges a 3% fee on all revenue above C$20 million, or about $14.6 million, generated by U.S. tech companies from Canadian users.
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” said Trump in a Truth Social post.
U.S. to Inform Canada of New Tariff Rate
Trump also said that the U.S. would inform Canada of its new tariff rate within seven days.
At the end of the day, Trump’s move to impose a new tariff and halt trade talks could be another bargaining tool for Canada to ease up on its digital services tax and trade requests. Last week, Canada Finance Minister Francois-Philippe Champagne implied that Canada was willing to negotiate the digital services tax as part of a trade deal with the U.S.
The Nasdaq 100 is down by 0.05% at the time of writing.
