In a significant shift in U.S.-Canada relations, President Trump announced that he is halting all trade discussions with Canada, primarily due to disagreements over a digital services tax that affects major American tech companies. This decision has led to a backlash from the Canadian government, which has vowed to retaliate against U.S. steel imports. The stock market experienced a pullback in response to the news, with the S&P 500 and Nasdaq retreating from their record-setting rallies. Trump emphasized that the trade talks were terminated ‘effective immediately’ and hinted at potential new tariffs on Canadian goods. As the market braces for further implications, investors are on alert, and discussions surrounding the digital tax remain contentious.