Canada folds on tech tax after Trump calls it ‘blatant attack’ on US

WorldPolitics
30 Jun 2025 • 11:31 PM MYT
The Independent
The Independent

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  • Canadian Prime Minister Mark Carney announced that Canada would rescind its digital services tax on American technology companies.
  • This decision came after Donald Trump said he would suspend trade talks with Canada over the tax, which he called “a direct and blatant attack on our country.”
  • The digital services tax, implemented last year, would have imposed a 3 percent levy on major tech firms like Google, Meta, Uber, and Amazon, potentially costing American companies $2 billion retroactively.
  • Carney and Trump spoke, agreeing to resume trade negotiations, with a target timeline of 21 July, 2025, for a trade deal.
  • The cancellation of the tax aims to put trade talks back on track amid ongoing trade disputes initiated by Donald Trump, including tariffs on Canadian and Mexican imports.

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