Summary
Canada has introduced a digital services tax on tech companies, which has led to trade tensions with the United States. President Donald Trump ended trade talks with Canada and plans to impose new tariffs in response to this tax, which affects big U.S. tech companies like Amazon and Google.
Key Facts
- Canada has a new digital services tax on tech revenue from users in Canada.
- U.S. President Donald Trump ended trade talks with Canada and plans new tariffs.
- The tax affects companies with global revenues over $820 million and Canadian revenues over $14.7 million.
- The tax rate is 3% on certain digital services, not on profit.
- The U.S. is Canada's largest trading partner, with a significant amount of goods traded annually.
- The tax is retroactive, meaning it applies to earnings from January 1, 2022.
- U.S. Congress members have urged President Trump to oppose this tax.
