Canada cancels Digital Services Tax to improve trade talks with US
(MENAFN) Canada has announced it will cancel its planned Digital Services Tax (DST) as part of efforts to improve trade relations with the United States and pave the way for a broader agreement.
The decision was made public on Sunday by Canadian Finance Minister Francois-Philippe Champagne, who stated that legislation will soon be introduced to formally repeal the Digital Services Tax Act, according to the Finance Ministry.
Reports indicate that Prime Minister Mark Carney and U.S. President Donald Trump have agreed to restart stalled trade discussions, with the goal of reaching a final deal by July 21.
Carney addressed the current situation, calling the ongoing discussions "complex" after Trump had previously declared that the United States would walk away from negotiations and consider imposing tariffs in retaliation for the DST.
"We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney said in comments to local media.
Trump criticized Canada’s proposed tax, stating in a social media post that “Canada's digital services tax on U.S. technology companies is a direct and blatant attack on the United States.”
The DST, originally set to take effect on Monday, would have placed a 3 percent tax on revenue generated from Canadian users by U.S. tech giants such as Amazon, Google, and Meta.
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