Canada rescinds digital services tax after Trump cuts off U.S. trade talks

The move comes after Trump announced over the weekend that he will be “terminating ALL discussions on Trade with Canada.” The first payments from Canada’s digital services tax were initially set to be collected Monday. The tax would have applied to both domestic and foreign tech companies with a 3% levy. 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, just one day before the first tax payments were due.

The move comes after U.S. President Donald Trump announced over the weekend that he will be “terminating

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