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Monday, 30 June 2025
Markets

Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks

Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks

US President Donald Trump is congratulated by Canadian Prime Minister Mark Carney, as he arrives at the G7 Leaders summit in Canada, Alberta, Alberta on 16 June 2025.

Stephen Russo | Via

Canada has gone back to its digital service tax of a mutually beneficial broad trade system with the United States, Ottawa announced on Sunday night.

This step comes after US President Donald Trump Announced in the weekend He will “end all discussions on business Canada“To impose one in response to Ottawa’s decision Digital service tax On American tech firms.

Canadian Prime Minister Mark Carney said in a statement, “Today’s announcement will support the resumption of negotiations from July 21, 2025, the schedule will be set at this month’s G7 Leaders Summit.”

This decision of Ottawa was almost a turn of Canadian officials earlier this month, who said that he said Digital service tax will not be stoppedDespite strong opposition from America

Canada’s Finance and National Revenue Minister Francois-Filip Champagne said, “Refruiting the digital service tax will allow a new economic and safety relations interaction with the United States and to strengthen our work to make significant progresses and make up our work to make important progress and create jobs for all Canadians.”

However, the statement of the Canadian Finance Ministry also states that Carney “became clear that Canada would necessarily take longer, but now, to get that deal.”

The first payment from Canadian Digital Services Tax, which was implemented last year and is rejected at 2022, was initially collected on Monday.

Tax applies to both domestic and foreign technical companies including American giants Heroic, Google And Meta With 3% levy.

– This is breaking news, please see back for updates.

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