Canada Rescinds Digital Services Tax After Trump Halts Trade Talks

Contact Your Elected Officials

President Donald Trump said on June 27 that he was ending all trade negotiations with Canada over Canadaโ€™s digital services tax.

The Canadian government is rescinding its digital services tax to avoid stalling trade talks with the United States, two days after U.S. President Donald Trump announced he would end negotiations over the levy.

Ottawa says that removing the tax will put Canada back on track to reach a trade deal with the United States by July 21.

Trump said on June 27 that he is ending all trade negotiations with Canada over Canadaโ€™s digital services tax (DST), which would impact U.S.-based tech companies such as Amazon, Google, and Netflix.

โ€œIn our negotiations on a new economic and security relationship between Canada and the United States, Canadaโ€™s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,โ€ Prime Minister Mark Carney said in a statement after announcing the removal of the tax on June 29.

โ€œTodayโ€™s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this monthโ€™s G7 Leadersโ€™ Summit in Kananaskis.โ€

During the G7 summit in Kananaskis, Alberta, on June 16, Carney and Trump agreed to reach a trade deal within 30 days.

The DST imposed a 3 percent tax on revenue that tech companies earn from digital services provided to Canadian users. It was scheduled to go into effect on June 30, and was retroactive to 2022, leaving U.S. tech companies with a $2 billion bill to pay by the end of June.

The Canadian tax had been an irritant to both the Biden and Trump administrations.

โ€œBased on this egregious Tax, we are hereby terminating all discussions on trade with Canada, effective immediately,โ€ Trump said on June 27. โ€œWe 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.โ€

The Trump administration has already imposed 25 percent tariffs on Canadian products, though goods falling under the U.S.โ€“Mexicoโ€“Canada Agreement have been exempted. Washington has also imposed blanket tariffs on all steel and aluminum imports.

By Omid Ghoreishi

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

The Very British Stalemate: British Politics Explained for Americans

The assumption in the minds of American commentators, politicians, and analysts is that the UK has "gone to the dogs" with "woke" political ideology.

NFL Vikings Male Cheerleader Controversy ย 

The NFL under the leadership of Roger Goodell is back to yet another controversy that is causing backlash and a possible boycott.

Euronews Is Euro-Trash: Lessons in Media Deception Tactics

Euronews โ€œcoveredโ€ the vicious murder of a 17-year-old Dutch girl by so-called asylum seeker who raped another girl, calling him simply a โ€œ22-year-old man.โ€

The Woke Left Goes Lock, Stock And Cracker Barrel

Another legendary American institution has been targeted by woke leftists. This time it is the popular family restaurant chain, Cracker Barrel, founded inย 1969.

โ€˜Indigenous Drag Story Hourโ€™: A Back-to-Public-School Treat For the Kids

I gave leading child-grooming outfit Drag Queen Story Hour my email to solicit me for funds to convert more public school kids into trannies.

Democrats Map Strategy and Urge Unity โ€™to Win Elections, Not Argumentsโ€™

DNC Chair Ken Martin called upon fellow Democrats to prioritize results over rhetoric as party opened its summer meeting in Minneapolis on Aug. 25.

Federal Reserve Signals Rate Cutโ€”What This Means for Your Money

In Jackson Hole keynote address Fed Chair Powell stated current conditions, a deteriorating labor market, โ€œmay warrantโ€ a change in monetary policy.

Netflix Unveils Opening Dates for Philadelphia, Dallas Entertainment Venues

Opening this fall in Philadelphia and Dallas, the Netflix House complexes will feature themed experiences and a restaurant inspired by Netflix content.

Texas Democrats Take Center Stage at DNC Summer Meeting Amid Redistricting Battles

Texas Democrats got a heroesโ€™ welcome on opening day of the Democratic National Committeeโ€™s summer meeting in Minneapolis.

Trump Floats New Meeting With Kim Jong Un as South Koreaโ€™s Lee Visits White House

President Trump welcomed South Koreaโ€™s new president, Lee Jae Myung, to the White House to discuss trade, investment, and defense collaboration.

Trump Signs Order Targeting American Flag Burning, Desecration

President Trump signed an EO that directs the attorney general to prosecute those caught burning the American flag or desecrating it in other ways.

Trump Signs Executive Orders Aimed at Ending Cashless Bail

Trump signed two EOs aimed at eliminating cashless bail, along with order adding specialized law enforcement units to executive agencies in Washington.

Airbnb Co-founder to Redesign Thousands of US Government Websites

Airbnb co-founder Joe Gebbia is honored to redesign thousands of U.S. government websites after he was appointed as Trumpโ€™s new design chief.
spot_img

Related Articles