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Canada drops digital tax in bid to restart US trade talks
The Straits Times
|July 01, 2025
Canada has withdrawn its digital services tax (DST) on technology firms such as Meta Platforms and Alphabet in a move to restart trade talks with the US.
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OTTAWA - Canada has withdrawn its digital services tax (DST) on technology firms such as Meta Platforms and Alphabet in a move to restart trade talks with the US.
"Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians," Finance Minister Francois-Philippe Champagne said in a post on social media on June 29.
US President Donald Trump on June 27 said he was ending all trade discussions with Canada, one of the US' largest trading partners, in retaliation for the DST. He also threatened to impose a fresh tariff rate within a week.
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