Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks

Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks


U.S. President Donald Trump is greeted by Prime Minister of Canada Mark Carney, as he arrives at the G7 leaders’ summit in Kananaskis, Alberta, Canada June 16, 2025.

Stefan Rousseau | Via Reuters

Canada has walked back on its digital services tax “in anticipation” of a mutually beneficial comprehensive trade arrangement with the United States, Ottawa announced Sunday night.

The move comes after U.S. President Donald Trump announced over the weekend that he will be “terminating ALL discussions on Trade with Canada” in response to Ottawa’s decision to impose a digital services tax on American tech firms.

The statement from Canada said that Prime Minister Mark Carney and Trump have agreed that they “will resume negotiations with a view towards agreeing on a deal by July 21, 2025.”

— This is breaking news, please check back for updates.



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