Canada cancels the digital services tax after Trump reduces the American commercial conversations star-news.press/wp

Canada has announced the digital services tax “in anticipation” of a comprehensive commercial arrangement in terms of benefit with the United States.

The move comes after US President Donald Trump announced during the weekend that he “will end all discussions about trade with Canada” in response to Ottawa’s decision to impose digital services tax on American technology companies.

“Today’s announcement will support the resumption of negotiations towards July 21, 2025,” Canadian Prime Minister Mark Carne said in the statement.

The first payments of the digital services tax in Canada, which were enacted last year, were collected retroactively until 2022, at the beginning to be collected on Monday. The tax had applied to both local and foreign technology companies, including US giants such as Amazon, Google and Meta with 3 % tax.

This decision was from Ottawa about to rotate from Canadian officials earlier this month, who said they You will not stop the digital services taxDespite the strong opposition from the United States

“The cancellation of the digital services tax will allow negotiations with a new economic and security relationship with the United States to achieve vital progress and enhance our work to create job opportunities and build prosperity for all Canadians.”

However, the statement issued by the Ministry of Finance in Canada also said that Carney “was clear that Canada would take as long as necessary, but it is no longer, to achieve this deal.”

The digital services tax was provided for the first time in 2020 to process the tax gap, as many large technology companies were obtaining large revenues from Canadians, but it was not imposed on it.

Ottawa also said that the tax was enacted while working with international partners – including the United States – on a multilateral agreement that replaces national digital services taxes.

Soon after Trump said the United States “ends all discussions about trade with Canada”, Treasury Secretary Scott Besent Morgan Brennan from CNBC that American commercial representative, Jameson Jarir, will be achieved in the tax “determining the amount of damage to American companies and the US economy in general.”

“Canada has this digital services tax,” Pesin said in the bell.

“Many countries within the European Union have digital service taxes. None of them did so retrospectively,” Besin added.

The total American commodity trade with Canada reached about 762 billion dollars last year, according to the American Trade Representative Office.

– KEVIN Breuninger of CNBC contributed to this report.