Summary
The White House stated that Canadian Prime Minister Mark Carney decided not to impose a digital services tax on large U.S. tech companies after discussions with President Donald Trump. This decision followed Trump's threat to raise tariffs and halt trade negotiations. Canada's finance minister announced the tax's cancellation, which aimed to tax major tech firms' revenues in Canada.
Key Facts
- Canada planned a tax on big U.S. tech companies like Amazon, Meta, Google, and Apple.
- The tax proposed a 3% charge on Canadian revenue over $20 million.
- President Trump threatened to stop trade talks and raise tariffs in response to the tax.
- Canada decided to cancel the tax to resume trade negotiations with the U.S.
- Canadian Finance Minister François-Philippe Champagne confirmed the tax's removal.
- The tax, introduced in 2020, aimed to tax tech companies not fully taxed on their Canadian earnings.
- The estimated cost to tech firms was over C$2 billion in the first year.
- The tax cancellation caused political criticism within Canada, particularly by opposition leader Pierre Poilievre, who urged a different approach to U.S. negotiations.
