Taxes he calls "a direct and obvious attack on our country".
According to The Washington Post it is about a 3 percent tax on revenue that large tech companies, such as Amazon and Google, receive from Canadian consumers.
"Based on this outrageous tax, we are terminating ALL trade discussions with Canada, effective immediately", Trump writes.
Furthermore, he announces that the US will notify Canada "the tariff they will pay to do business" with the US within a week.
Trump gave his administration in February the task of combating taxes like this, and said that foreign officials "openly acknowledge that they are designed to plunder American companies", writes The Washington Post.
Canada's Finance Minister François-Philippe Champagne said earlier in June that the country would not postpone the introduction of the tax in connection with trade negotiations with the US.
Last week, Canada's Prime Minister Mark Carney also threatened the US with countermeasures to stabilize the country's steel and aluminum production, after the sector was severely affected by the US's increased tariffs. Then Carney gave a 30-day deadline to Trump and according to the Prime Minister, Canada would either raise or lower the retaliatory tariffs depending on how the negotiations go.