Summary
Canada decided not to go forward with a planned digital tax on U.S. tech companies. This decision came after President Trump threatened to impose higher tariffs on Canadian goods. Canada aims to resume trade talks with the U.S. to reach a new trade deal.
Key Facts
- Canada canceled a digital tax that would have affected U.S. tech companies like Google and Amazon.
- President Trump threatened higher tariffs on Canadian imports if the tax went ahead.
- The digital tax was supposed to start on Monday but was withdrawn to avoid trade issues.
- Canada's Finance Minister said the tax was canceled in hopes of a new trade deal with the U.S.
- Canada aims to reach a trade agreement with the U.S. by July 21.
- Current U.S. tariffs include a 25% tax on certain Canadian imports and a 50% tax on Canadian aluminum and steel.
- The Trump administration has a deadline of July 9 for reaching trade deals before higher tariffs are applied globally.
- The stock market initially dropped when high tariffs were announced but later improved when the situation seemed to calm down.
