Canada Scraps Digital Tax to Salvage Trade Talks with U.S.
(MENAFN) Canadian Finance Minister Francois-Philippe Champagne announced Sunday that Canada will eliminate its Digital Services Tax (DST) as it moves forward with plans for a wider trade agreement with the United States.
The Finance Ministry confirmed that Prime Minister Mark Carney and U.S. President Donald Trump have agreed to restart trade talks, with the goal of reaching a finalized deal by July 21.
In a formal statement, the ministry said Champagne will soon table legislation to repeal the Digital Services Tax Act.
Carney responded to Trump's earlier declaration — in which the U.S. president threatened to abandon trade negotiations and possibly introduce new tariffs — by acknowledging the complexity of the discussions.
"We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney told local media.
Trump had announced the suspension of talks in protest of Canada's planned digital tax targeting American tech companies.
Canada’s digital tax targeting U.S. tech firms amounts to a clear and deliberate assault on the United States, Trump said in a social media post.
The tax, which was scheduled to take effect Monday, would have imposed a 3 percent levy on revenue generated from Canadian users by U.S. tech giants such as Amazon, Google, and Meta.
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