Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks

Canada has returned to its tax on digital services “in anticipation” of a complex mutually beneficial agreement with the United States, Ottawa announced on Sunday evening.

This decision comes after US President Donald Trump Announced during the weekend that he “will end all discussions on trade with Canada“In response to Ottawa’s decision to impose a Digital services tax on American technological companies.

“Today’s announcement will support a resumption of negotiations around July 21, 2025, the calendar appeared at the top of G7 leaders of this month in Kananaskis,” Canadian Prime Minister Mark Carney said in the statement.

This decision by Ottawa was a bit shot by Canadian officials earlier this month, who said they would not arouse the digital services taxDespite strong opposition from the United States

The Minister of Canada of Finance and National Revenues François-Philippe Champagne has added: “The cancellation of the digital services tax will allow negotiations of a new economic and security relationship with the United States to make vital progress and strengthen our work to create jobs and strengthen prosperity for all Canadians.”

However, the Declaration of the Ministry of Finance of Canada also said that Carney “has been clear that Canada would take as long as necessary, but more, to conclude this agreement.”

The first payments of the Canada digital services tax, which was promulgated last year and applied retroactively to 2022, were initially perceived on Monday.

The tax would have applied to national and foreign technological companies, including American giants such as Amazon,, Google And Meta with a 3%sample.

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