
Canada Will Scrap Tax That Prompted Trump to Suspend Trade Talks
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Canada Will Scrap Tax That Prompted Trump to Suspend Trade Talks
Prime Minister Mark Carney discussed the decision to scrap Canada’s digital services tax with Mr. Trump on Sunday. The tax, which had been due to take effect on Monday, became the latest flashpoint in difficult negotiations between the U.S. and Canada.
Prime Minister Mark Carney discussed the decision to scrap Canada’s digital services tax with Mr. Trump on Sunday, Mr. Carney’s office said. In a sign that trade talks were resuming, Canada’s finance minister, François-Philippe Champagne, spoke with the United States Trade Representative, Jamieson Greer, on Sunday, according to Mr. Carney’s office.
The tax, which had been due to take effect on Monday, became the latest flashpoint in difficult negotiations between the United States and Canada on Friday, when Mr. Trump said the talks were off. On social media, Mr. Trump called the levy a “blatant attack” and said he would inform Canada within a week about the duties “they will be paying to do business with the United States of America.”
Forty-eight hours later, the Canadian government folded, announcing it would not go ahead with the tax. The finance ministry said the government had decided to “rescind the Digital Services Tax in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
Source: https://www.nytimes.com/2025/06/29/world/canada/trump-digital-services-tax.html