Canada scraps tax on tech giants in bid to revive US trade talks
US President Donald Trump had stopped negotiations with Canada over what he called an “attack” on American businesses Read Full Article at RT.com
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US President Donald Trump had halted negotiations with Ottawa over what he called an “attack” on American companies
Canada has shelved its plan to slap a digital services tax (DST) on tech companies in a bid to get trade talks with the US back on track, reversing course just as the measure was due to kick in.
The 3% tax, passed into law last year by the government of former Prime Minister Justin Trudeau, was set to take effect on Monday and would have been applied retroactively to 2022-2024 profits. It would have primarily targeted US companies like Amazon, Google and Meta, costing them an estimated $3 billion.
“Today’s announcement will support a resumption of negotiations toward the July 21, 2025 timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Canadian Prime Minister Mark Carney said in a statement on Sunday.
“Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” he added.
Canada is engaged in complex negotiations on a new economic and security partnership with the U.S.
Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.
