Canada rescinds digital services tax, trade talks with US to resume
Canadian businessman Kevin Olieri discusses the battle of the United States and Canada’s tariffs and the future of the “big and beautiful bill” in “The Evening Edit”.
Canadian Prime Minister Mark Carnary will resume commercial talks with US President Donald Trump after Canada said late on Sunday that she will cancel digital services tax on American technology companies.
The Canadian government said it would cancel the digital services tax “in anticipation of a comprehensive commercial arrangement that is useful for both parties with the United States.”
“In line with this measure, Prime Minister Carney and President Trump agreed that the parties will resume negotiations with the aim of agreeing on a deal by July 21, 2025,” Canada Finance Ministry said in a press statement.
He added that the June 30, 2025 group will be suspended, and that the legislation is suspended to cancel the digital services tax law.
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President Donald Trump meets with Canadian Prime Minister Mark Carne at the 7 Group Group Summit in Kannanchis, Alberta, Canada, on June 16, 2025. (Reuters / Kevin Lamark / Reuters)
The digital services tax in Canada entered into force in June 2024 and requires large companies, whether it is based in Canada or anywhere else, to pay a 3 % tax on revenues gained from participating with users online in Canada if they face certain conditions.
Trump ended commercial discussions with Canada on Friday, referring to the digital services tax on American technology companies such as Amazon, Meta, Google and Apple, among others, as a reason.
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“It is clear that they are copying the European Union, which did the same, and is currently discussing with us. Based on this terrible tax, we end all discussions about trade with Canada, immediately effective,” Trump wrote in a post on the social truth.
Mark Carney, Canadian Prime Minister, speaks during a campaign in Calgary, Alberta, Canada, on Tuesday, April 8, 2025. (Gavin John / Bloomberg / Getty Images)
Trump said that the administration will reach Canada during the “seven period” about the tariff that it will drive to carry out business with the United States
The president added in his position that Canada is a “very difficult country in trading” and claimed that Canada imposed a tariff of up to 400 % on American dairy products.
The collapse of commercial talks was followed by the G7 leader’s meeting early this month, and Carney said they had agreed to end a new economic agreement within 30 days.
Abu Dhabi, United Arab Emirates-May 16: US President Donald J. Trump, during a forum for investment in the United States, along with the American Secretary of the Treasury, Scott Bessen (PBUH) in the continent of Watan, the Presidential Palace of the United Arab Emirates, on May 16, (Photography from Win McNamee / Getty Images / Getty Images)
The United States is the largest commercial partner in Canada, while Canada is the largest importer of American exports and one of the three best sources of American imports.
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Canada had survived Trump’s wide tariff imposed in April, but facing 50 % duties on steel and aluminum.
Eric Rival and Reuters contributed to Fox Business.
2025-06-30 04:31:00
