New Delhi, June 28 -- US President Donald Trump has suspended trade talks with Canada, citing the country's refusal to back down on a new 3% digital services tax, calling it "a direct and blatant attack on our country."

The digital services tax imposed by Canada will impact major tech companies like Amazon, Google, Meta and Uber.

The tax is set to go into effect Monday and apply retroactively, leaving U.S. companies with a $2 billion U.S. bill due at the end of the month, Fortune reported.

Trump called the tax "egregious" and immediately terminated all trade discussions with Canada, vowing to announce new tariffs on Canadian goods within seven days.

Trump later said he expects that Canada will remove the tax, citing the U.S.' economic...