Canada cancels the digital services tax after Trump reduces the American commercial conversations

Ottawa has announced the “Digital Service” tax “in anticipation” of a comprehensive commercial arrangement in terms of benefit with the United States.

This step comes after US President Donald Trump During the weekend He will “end all discussions about trade with CanadaIn response to Ottawa’s decision to impose a 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.

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 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 Amazonand Google and Dead With 3 % tax.

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