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Canada has returned to its tax on digital services “in anticipation” of a mutually beneficial commercial arrangement with the United States, Ottawa announced on Sunday evening, one day before the first tax payments were to.
This decision comes after US President Donald Trump Announced during the weekend that he “will put an end to all discussions on trade with Canada“In response to Ottawa’s decision to impose a Digital services tax on American technological companies.
“Today’s announcement will support a resumption of negotiations around July 21, 2025, the calendar appeared at the top of the G7 leaders this month in Kananaskis,” Canadian Prime Minister Mark Carney said in the statement.
The first payments of the Canada digital services tax, which was promulgated last year and applied retroactively to 2022, were initially perceived on Monday. The tax would have applied to national and foreign technological companies, including American giants such as Amazon,, Google And Meta with a 3%sample.
This decision by Ottawa was a bit shot by Canadian officials earlier this month, who said they would not arouse the digital services taxDespite strong opposition from the United States
The Minister of Canada of Finance and National Income François-Philippe Champagne has added: “The cancellation of the digital services tax will allow negotiations of a new economic and security relationship with the United States to make vital progress and strengthen our work to create jobs and strengthen prosperity for all Canadians.”
However, the Declaration of the Ministry of Finance of Canada also said that Carney “was clear that Canada would take as long as necessary, but more, to conclude this agreement.”
The digital services tax was introduced for the first time in 2020 to fill a tax gap where many large technological companies gained significant income from Canadians, but were not taxed.
Ottawa also said that the tax had been promulgated while working with international partners – including the United States – on a multilateral agreement that would replace national taxes on digital services.
Shortly after, Trump said that the United States “ended all trade discussions with Canada“, The Treasury Secretary, Scott Bessent, told Morgan Brennan de CNBC that the American commercial representative Jamieson Greer would investigate the tax to” determine the amount of damage for American companies and the American economy in general “.
“Canada has this digital services tax. And several other countries too. We do not agree, and we think they discriminate American companies “,” Bessent said On “Closing Bell: Closing Bell” by CNBC.
“Several countries within the European Union have digital service taxes. None of them have made these facts retroactively,” added Bessent.
The trade of American products with Canada totaled around $ 762 billion last year, according to the office of the American commercial representative.
