US and Canada to resume trade discussions following

US and Canada to resume trade discussions following the cancellation of the digital tax

Following Canada's decision to abandon its proposed digital services tax on American technology companies, trade negotiations between Ottawa and Washington are poised to recommence.

US President Donald Trump addresses the media while Canadian Prime Minister Mark Carney observes.
Trade tensions persist between US President Donald Trump and Canadian officials.

This week, trade discussions between the United States and Canada are scheduled to restart after Canada retracted its plans for a digital services tax (DST) targeting US tech firms.

Initially introduced in 2020, the DST was intended to impose a 3% tax on revenues generated from Canadian users of digital services, affecting major US corporations such as Amazon, Meta, and Apple.

President Trump had criticized the proposed tax as a "blatant attack" and suspended trade negotiations on Friday, warning of potential retaliatory tariffs on Canadian products.

However, the tax was withdrawn mere hours before its implementation, allowing trade discussions between the two nations to proceed, with an agreement anticipated by July 21, as stated by the Canadian Foreign Ministry.

"Canada has consistently favored a multilateral agreement concerning digital services taxation," the statement indicated, noting that the cancellation of the DST is made "in anticipation of a mutually advantageous comprehensive trade deal with the United States.