Trump is Keen Canada to kill a large technology tax

Donald Trump has a reason to celebrate. In an amazing quick reflection, Ottawa seized his demands and canceled a controversial tax aimed at American technology giants, and ending the confrontation that started on Friday.

“Canada will cancel the Digital Service Tax (DST) in anticipation of a comprehensive commercial arrangement that is useful for both parties with the United States,” Finance Minister Francois Philip in A. statement Sunday evening.

After this announcement, Prime Minister Mark Carney and President Trump agreed that the parties would resume negotiations with the aim of agreeing on a deal by July 21, 2025. “

This represents an amazing and fast victory for Trump, who shocked the markets on Friday with a mail On the social truth platform. he Declare Given the decision of Canada to impose digital services tax on American technology companies, “We end all discussions about trade with Canada, immediately.”

For Trump, this surrender provides a political victory that affects the need in a critical moment. His presidency was defined by the aggressive “first” trade policy, as it launched high risk trade wars with a tariff for goods from China and Europe. This confrontation pattern now comes to his head, as the deadline approaches July 9 to countries around the world to end new trade deals with the United States or face a new wave of “mutual” sharp definitions. Forcing a major ally like Canada on the ray quickly and in public, sends a strong message to other negotiating partners.

Victory also helps the Trump project’s strength on the home front after a bruising political confrontation. He faced his distinguished legislative priority, a “beautiful, beautiful draft law”, severe criticism, even from the former allies such as Elon Musk, because of his tremendous spending and deep wounds on popular programs. After forcing him to move in a broken Republican Party to obtain a bill through Congress, securing a clear victory against a foreign government due to the unconfined technology tax provides the administration with a valuable positive momentum.

The confrontation focused on the digital services tax in Canada. This procedure imposes a 3 % tax on Canadian revenue for large digital companies, such as Amazon, Google and Meta. The tax has been in effect since last year, but the first payments were due this Monday, June 30.

“The group of June 30, 2025 will be suspended,” Al -Shambania said in his statement.

The tax was a major disagreement point. While Canada is not the only country to implement such a measure, as countries such as France, Italy and the United Kingdom join, the United States government views these taxes as not fairly targeting American companies. In recent weeks, a coalition of Canadian and American business groups, along with American technology organizations and US -elected officials, has signed messages calling on the Canadian government to cancel or suspend the tax.

Prime Minister Mark Carney sought to frame the decision as a step towards a broader and more beneficial agreement. Carney said: “In our negotiations on a new economic and security relationship between Canada and the United States, the new government in Canada will always consider the comprehensive contribution of any possible agreement in the interests of Canadian workers and companies,” Carney said.