Summary
Canada has canceled its digital services tax to restart trade talks with the United States after President Trump stopped negotiations in response to the tax. Canada and the U.S. have agreed to continue these discussions, aiming for progress by July 2025.
Key Facts
- Canada withdrew its digital services tax aimed at large tech companies.
- U.S. President Trump stopped trade talks with Canada because of this tax.
- Canadian Prime Minister Mark Carney and Trump agreed to restart trade talks.
- The goal is to make progress by July 21, 2025.
- The tax would have applied to large tech firms making over $820 million globally and $14.7 million in Canada.
- Affected companies would pay a 3% levy on digital service revenues from Canadian users.
- The tax was meant to apply to online marketplaces, social media, ads, and user data sales.
- The tax would have been retroactive, covering revenues from January 1, 2022.
