Carney confirms Canada-U.S. talks restart after digital tax withdrawal

Published 30/06/2025, 20:26
© Reuters.

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U.S. Canadian Finance Minister François-Philippe Champagne announced earlier on Monday that the legislation would be repealed and the scheduled June 30 implementation halted.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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.