President Donald Trump on Friday said the United States is immediately "terminating ALL discussions on Trade with Canada" in response to Ottawa's decision to impose a digital services tax on American tech firms.

Trump's announcement on Truth Social accused Canada of "copying the European Union" with the "egregious" tax.

"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," Trump added.

The office of Canadian Prime Minister Mark Carney did not immediately respond to CNBC's request for comment.

The president's angry declaration suddenly imperils America's trade relationship with a close ally that has long been one of its top two global trading partners.