Canada rescinds digital services tax to revive US trade talks; eyes July 21 deal

Published 30/06/2025, 05:06
© Reuters

Investing.com-- Canada announced on Monday it will rescind its Digital Services Tax (DST), clearing the way for the resumption of trade and security negotiations with the United States, with both sides aiming to strike a deal by July 21.

Finance Minister François-Philippe Champagne said the government will halt the June 30 collection of the DST and introduce legislation to repeal the Digital Services Tax Act, which had targeted large multinational tech firms operating in Canada. The tax, introduced in 2020, was seen by Washington as a key obstacle to broader trade discussions.

The decision comes just days after U.S. President Donald Trump abruptly called off trade talks on Friday, denouncing the tax as a “blatant attack".

“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,” Champagne said in a statement.

Prime Minister Mark Carney and U.S. President Donald Trump agreed to restart talks, reaffirming their goal of reaching a comprehensive agreement that supports workers and businesses on both sides of the border. The timeline reflects commitments made at the G7 Leaders’ Summit in Kananaskis earlier this month.

Carney emphasized that Canada would take "as long as necessary, but no longer, to achieve that deal."

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