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The Prime Minister of Canada claims that trade negotiations with us will resume with a decision to drop a new sample.
Canada has canceled its Digital services tax In order to advance trade negotiations with the United States, a few days after US President Donald Trump called Talks for reprisals for the levy.
Canadian Prime Minister Mark Carney in a statement said on Sunday, said he and Trump had now agreed to resume commercial negotiations.
“Today’s announcement will support a resumption of negotiations around July 21, 2025, the calendar appeared at the top of G7 leaders this month in Kananaskis,” said Carney.
The Canadian levy on technological companies was due to come into force on Monday.
Trump said on Friday that the tax, targeting “our American technological societies”, was “a direct and obvious attack against our country”.
The United States is home to some of the world’s largest technological companies, including Apple, Alphabet / Google, Amazon and Meta.
Canadian technological journalist Paris Marx told Al Jazeera that Carney’s decision to drop the sample to show Trump that “Canada can be pushed”.
“Multinational technology companies do not pay their fair share of tax in Canada and the digital services tax is designed to remedy it,” said Marx, who hosts the Podcast Tech Won’t Save US.
“It has been continuously delayed for years in the hope that an OECD diplomatic process would create an international framework to guarantee that these companies pay more tax in the countries of the world, but in the United States, under [former US President Joe] Biden and Trump made sure that he was unable to move forward, “he said.
“More and more countries are promulgating digital services for this reason, and Canada is wrong to retreat,” he added.
Canada’s planned digital tax represented 3% of digital services revenues that a company draws Canadian users over $ 20 million during a calendar year, and payments had to be retroactive at 2022.
Digital services The levy was to apply to include online markets, social media platforms, digital advertising and selling or granting user data licenses.
The Ministry of Finance of Canada said that the collection of the tax will be interrupted and that the Minister of Finance François-Philippe Champagne will propose a law to cancel the law on digital services (DST).
“The DST was announced in 2020 to deal with the fact that many major technological companies operating in Canada cannot pay a tax on income generated by Canadians,” the statement said. “Canada’s preference has always been a multilateral agreement linked to the taxation of digital services.”
Canada is the second American trading partner after Mexico and the largest buyer in American exports. He bought $ 349.4 billion in American products last year and exported $ 412.7 billion in the United States, according to US Census Bureau data.
Canada had escaped the broad prices of Trump imposed in April but faces 50% of steel and aluminum tasks.
