This is a developing story, and updates will follow as the situation evolves.
Canada Abandons Controversial Tax, Resumes Trade Talks with Trump Administration
Canada Abandons Controversial Tax, Resumes Trade Talks with Trump Administration
In a significant policy shift, Canada has canceled its tax on American tech companies, paving the way for renewed dialogue with the Trump administration.
The Canadian government announced late Sunday night that it will scrap the proposed digital services tax, a decision made in discussions between Prime Minister Mark Carney and President Trump. This cancellation comes in the wake of President Trump suspending trade talks over the tax, which had been set to take effect soon. Following this announcement, Canadian Finance Minister François-Philippe Champagne engaged with U.S. Trade Representative Jamieson Greer, signaling a thaw in relations. The controversial 3 percent tax, which aimed to collect payments retroactively from American tech giants, faced criticism from U.S. officials who deemed it biased. As the political landscape shifts, the Canadian government is expected to move quickly to legislate the tax's repeal, with implications for approximately $2.7 billion in expected revenue from tech companies.
