Canada has rescinded its digital services tax targeting United States technology firms in a bid to advance trade negotiations with the US, Canada’s finance ministry said in a statement on Sunday (Jun 29), days after US President Donald Trump called off trade talks.
Canadian Prime Minister Mark Carney and Trump will resume trade negotiations in order to agree on a deal by Jul 21, 2025, the ministry said.
On Friday, Trump abruptly cut off trade talks with Canada over its tax targeting US technology firms, saying that it was a “blatant attack” and that he would set a new tariff rate on Canadian goods within the next week.
The tax was 3 per cent of the digital services revenue a firm takes in from Canadian users above US$20 million in a calendar year and payments will be retroactive to 2022.
