Trump’s Trade Bombshell: Nasdaq 100 Tumbles After Canada Talks Collapse
Markets reel as geopolitical shockwaves hit tech-heavy index.
Another day, another headline-driven selloff—traders barely had time to finish their avocado toast before the algos kicked in.
Trade tensions flare: The abrupt termination of negotiations sends risk assets scrambling, proving once again that in modern finance, Twitter fingers move faster than economic fundamentals.
Tech takes the hit: With supply chain concerns resurfacing, FAANG stocks lead the downward charge—because nothing says 'stable market' like trillion-dollar companies swinging on presidential mood swings.
The silver lining? Crypto markets barely blinked—decentralization looking slightly less like a buzzword and more like a survival trait today.
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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.
