Summary
Canada decided to cancel a tax on large U.S. technology companies just before it was supposed to start. This move was made to restart trade talks with the United States, which had been stopped after U.S. President Donald Trump criticized the tax. The planned tax would have charged companies like Amazon, Meta, Google, and Apple a 3% fee on revenue made in Canada over $20 million.
Key Facts
- Canada canceled a planned tax on U.S. tech companies to restart trade talks with the U.S.
- The tax, called the digital services tax (DST), was to be 3% on Canadian revenue over $20 million for big tech firms.
- The trade talks were halted after U.S. President Donald Trump called the tax a "blatant attack."
- Canada's finance minister, François-Philippe Champagne, announced the tax cancellation.
- The tax was initially announced in 2020 to ensure tech companies pay taxes on money made in Canada.
- It was estimated that the tax could have cost tech companies over $2 billion per year.
- Trump, who has strong ties with tech company owners, opposed the tax.
- Canada exports over $400 billion worth of goods to the U.S. each year.
