Canada cancels digital taxes. Prime Minister Carney expects to resume negotiations on trade agreement with the US, which the US has stopped because of the original measure.
Canada canceled its toll against American technology companies and renewed business negotiations with the United States, informed Prime Minister Mark Carney. US President Donald Trump announced the suspension of these negotiations on Friday and described the Canadian tax as a “direct and apparent attack on the United States”. According to the AP and AFP report, TASR writes about it.
“Canada will cancel the digital service tax in anticipation of a mutually convenient comprehensive trade agreement with the United States,” the government’s statement said. Canadian Finance Minister François-Philippe Champagne added that Trump and Carney “agreed to renew the negotiations to conclude an agreement by July 21, 2025”. The White House did not comment immediately.
The Canadian government introduced a new digital tax tax a year ago when Joe Biden was still US president. According to this measure, large domestic and foreign companies must pay three percent of digital services income if their volume exceeds $ 20 million ($ 14.6 million). The aim of the government in Ottawa was to ensure that these companies were taxed where they earn – in this case in Canada. This would also affect large companies from the United States such as Amazon, Google, Meta, Uber and Airbnb.
US technology companies were originally supposed to pay the first payment of this tax on Monday, June 30.
