 "US resumes trade talks with Canada after PM Carney revokes 'digital tax' on American tech firms")
Canadian Prime Minister Mark Carney said on Sunday that trade talks with the United States have resumed after Canada dropped its plan to tax American tech companies.
US President Donald Trump had paused trade discussions on Friday because of Canada’s proposed Digital Services Tax, which he called “a direct and blatant attack on our country.” The Canadian government announced it would cancel the tax “in anticipation” of a trade deal. The tax was supposed to take effect on Monday. Carney’s office confirmed that he and Trump agreed to restart negotiations.
“Today’s announcement will help resume talks aiming for the July 21, 2025, deadline we set at the G7 Leaders’ Summit in Kananaskis,” Carney said in a statement.
Carney visited Trump at the White House in May for discussions. Later, during the G7 summit in Alberta, Carney said Canada and the US had agreed on a 30-day timeline to reach a trade agreement.
Trump had earlier pulled out of trade talks with Canada because of Canada’s plan to introduce a Digital Services Tax. He warned that Canada would soon find out what tariff rates the US might impose, calling Canada “a difficult country to deal with.”
“We’ve just learned that Canada, a very difficult country to trade with, has announced a Digital Services Tax on our American tech companies,” Trump wrote on Truth Social. “This is a direct and blatant attack on our country. For years, they’ve also charged our farmers tariffs as high as 400% on dairy products.”
Impact Shorts
More Shorts“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period."
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