US President Donald Trump on Friday announced that he is calling off all trade negotiations with Canada immediately, citing its digital services tax.

He said that Ottawa will also learn about their tariff rate within a week.

"We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," Trump posted on Truth Social.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period. Thank you for your attention to this matter!" he announced.

Donald Trump earlier this month visited Canada to attend the G7 Summit.

In March earlier this year, Trump had delayed a 25% tariff on vehicle imports from Mexico and Canada for a month, amid fears that a trade war between the neighboring countries could hurt the "Big 3" U.S. automakers.

Top diplomats from the United States and Canada held trade talks during that time too.