Canada has rescinded its digital services tax in response to President Donald Trump suspending trade talks with the aim of continuing negotiations.
As Breitbart News reported over the weekend, Trump terminated trade talks with Canada due to its tax on American tech goods.
“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,” the president said on Truth Social.
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also,” he added.
On Sunday, Canadian Prime Minister Mark Carney said in a statement that he supports “a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” per NBC News:
The first payments from Canada’s digital services tax, which was enacted last year and applies retroactively to 2022, were initially set to be collected Monday. The tax would have applied to both domestic and foreign tech companies, including U.S. giants such as Amazon, Google and Meta with a 3% levy.
This decision from Ottawa was an about-turn from Canadian officials earlier this month, who said they would not pause the digital services tax, despite strong opposition from the U.S.
Francois-Philippe Champagne, Canada’s Minister of Finance and National Revenue, said rescinding the tax will help resume negotiations on trade.
“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” said Champagne.
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