Canada responds after Trump halts trade talks over digital services tax

Ottawa – Canada will continue in the DVA (DST) on technology companies, which president Donald Trump called “a direct attack and a beating of our country” in a social position in fact on Friday, in which he said that his administration “ends all discussions on trade with Canada immediately.”

On Friday, the office of Canadian Prime Minister Mark Carney issued one response to the president’s announcement.

“The Canadian government will continue to participate in these complex negotiations with the United States in the interest of workers and Canadian companies,” she said.

Trump says we are ending all commercial talks with Canada on digital services tax

The first batch of 3 % DST is still due on Monday, which the Ministry of Finance confirmed to Canada to Bloomberg News, and covers the revenue of the digital services collected from Canadian users retrospectively to 2022, reaching about 2 billion dollars for companies such as Amazon, Meta and Google.

Last week, Canadian Finance Minister Francois-Philip told reporters that the tax can be negotiated as part of broader trade discussions in the United States.

In a statement issued on Friday, the Business Council in Canada said that it has long warned that “the implementation of the unilateral digital services tax can risk undermining the economic relationship in Canada with its most important commercial partner, the United States. This unfortunate development has now been developed.”

“In an attempt to restore commercial negotiations to the right track, Canada must submit an immediate suggestion to eliminate Dest in exchange for the cancellation of definitions from the United States,” said Goldi Haider, President and CEO of the Council.

Vehicles cross the blue water bridge over the Saint Claire River to Port Horon, Michigan from Sarina, Canada, on March 18, 2020, in Port Horon, Michigan. (Photo by Jeff Kualasavi B via Getti Imachurs / Tire)

Canada is ready to fight Trump, as the country’s leaders threaten revenge: “the dollar against the dollar”

Doug Ford, Prime Minister of Ontario – called on the most ancient boycott in Canada – to “stop” in the execution of the tax, which entered into force last June.

He said in a speech last October: “For our American partners, this is only an unfair tax that endangers millions of Canadian jobs.”

However, in an interview with Fox News Digital, Frank Makina, the former Canadian ambassador to the United States, said that Trump’s sudden announcement of ending commercial talks with Canada reveals “how difficult it is.”

“It is an extraordinary procedure by one of the neighbors and commercial partner, and it only shows the extent of lack of expectation and chaos in the United States under the leadership of President Trump,” said Makina, the current president of Brookfield Corp and Vice President of TD Securities.

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Bloomberg said on Friday that DST will not affect the last G7 agreement, which led to the removal of the “Revenge Tax” proposal from section 899 of the Trump tax bill, according to the Canadian Ministry of Finance.