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Canada Rescinds Tech Tax to Advance Stalled US Talks
Hindustan Times Ranchi
|July 01, 2025
Canada scrapped its digital services tax targeting US technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States.
OTTAWA/TORONTO: Canada scrapped its digital services tax targeting US technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States. Canadian Prime Minister Mark Carney and US President Donald Trump will resume trade negotiations in order to agree on a deal by July 21, Canada's finance ministry said in a statement.
Trump abruptly called off trade talks on Friday over the tax targeting US technology firms, saying that it was a "blatant attack".
He reiterated his comments on Sunday, pledging to set a new tariff rate on Canadian goods within the next week, which threatened to push US-Canada relations back into chaos after a period of relative calm.
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