Week-Long Countdown Begins as Trump Sets Canada Tariff Deadline

A tense seven-day countdown has begun following President Trump’s ultimatum to Canada regarding retaliatory tariffs, creating an unprecedented timeline pressure for resolving one of the most significant trade disputes in recent US-Canada history. The week-long deadline coincides with Monday’s digital services tax payment requirements, creating multiple pressure points for all parties involved.
The compressed timeline leaves little room for traditional diplomatic processes, as both governments must navigate complex domestic and international considerations within an extremely short timeframe. Canadian Prime Minister Mark Carney faces the challenge of potentially reversing or modifying the digital tax policy that his government has spent months developing and implementing.
American technology companies including Alphabet, Amazon, and Meta find themselves caught between the immediate requirement to pay $3 billion in digital services taxes and the uncertainty created by Trump’s threat of retaliatory measures. The Monday payment deadline creates practical obligations that cannot easily be postponed while governments negotiate.
The seven-day ultimatum represents a dramatic escalation from the cooperative atmosphere that had characterized recent US-Canada relations, particularly following the G7 summit in Alberta where both leaders had committed to pursuing trade agreements. Trump’s decision to reference broader trade grievances, including 400% tariffs on dairy products, suggests that the ultimatum period may be used to address multiple longstanding issues rather than focusing solely on the digital tax controversy.