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Tuesday, 1 July 2025
National

Canada drops tech tax: White House Says Ottawa ‘caved’ to Trump; trade talk to resume

Canada drops tech tax: White House Says Ottawa ‘caved’ to Trump; trade talk to resume

US President Donald Trump (left), Canadian PM Mark Carney (AP)

The White House said on Monday that Canadian Prime Minister Mark Carney had “caused” for the pressure of US President Donald Trump, Canada withdrew a controversial after targeting American technical companies, a move that triggered a freeze in a business talks.White House press secretary Karolin Lewit told reporters, “This is very simple. Prime Minister Carney and Canada asked for President Trump and the United States.” He said that Trump “knows how to interact,” and “Every country on the planet needs good trade relations with the United States.”The dispute arising from Canadian Digital Services Tax was enacted last year, which would require major American technical firms such as Alphabet and Amazon to pay multiple dollars by Monday. In response, Trump suddenly called a business talks with Otawa, which he called an inappropriate levy.Canada announced late on Sunday night that he was taking back tax and would resume the business talks with Washington. The relationship between Trump and Carney increased despite the recent melting. The two leaders held a meeting at the White House on May 6 and again at the G7 Summit earlier this month, where global leaders urged Trump to reduce their conflict stance on trade.However, the tension re -moved over the weekend when Trump revives his rhetoric that Canada should become the 51st state of the United States. “Clearly, Canada must be the 51st state, okay? It should be really, because Canada depends entirely on the United States. We do not rely on Canada.” Levit defended the tough attitude of the administration, warning that the countries that still oppose American trade demands could face results. He said, “He is going to determine the rates for many of these countries, if he does not come to the table to interact in good faith, and he is meeting with his trade team this week to do so,” he said, Trip said, Trip’s time on July 9, referring to the deadline for new trading bills.



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