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Investing.com -- Prime Minister Mark Carney confirmed Monday that trade and security negotiations between Canada and the United States have resumed, following the government’s decision to withdraw its digital services tax. The move came after U.S. President Donald Trump halted trade discussions last week and warned of possible tariffs.
Addressing reporters in Ottawa, Carney said the decision was tied to ongoing efforts to reach a broader agreement by the previously set July 21 deadline. “Last night I had a good conversation with President Trump. And we agreed to recommence our negotiations with a view to the 21st of July deadline we had agreed in Kananaskis,” he said.
The tax, introduced in 2020, would have applied to large multinational tech firms, several of which are based in the U.S. Canadian Finance Minister François-Philippe Champagne announced earlier on Monday that the legislation would be repealed and the scheduled June 30 implementation halted.
Carney said resuming talks had been anticipated, with the tax expected to be resolved as part of a wider deal. “To be clear, it’s part of a bigger negotiation. It’s something that we expected in the broader sense that would be part of a final deal,” he noted.
He added that Canadian ministers had spoken with U.S. counterparts ahead of the announcement. “Minister Champagne and [Minister of Intergovernmental Affairs] LeBlanc had conversations with their counterparts as well. We restarted the discussions this morning,” Carney said.
Explaining the decision to rescind rather than delay the tax, Carney pointed to administrative efficiency. “It doesn’t make sense to collect tax from people and then remit them back. So [it] provides some certainty, and as I just said, the negotiations have restarted,” he said.