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Canada Withdraws 3% Digital Tax on US Tech Firms to Revive Trade Talks with Trump

  • Canada canceled its planned 3% digital services tax on US tech firms.
  • The cancellation aims to revive stalled trade talks between Canada and the US.
  • Canada and the US are negotiating to finalize a trade deal by 21 July 2025.
  • The trade talks respond to US tariffs on Canadian imports announced earlier in 2025.
  • Canada had retaliated with tariffs on US steel and aluminum products.
  • Prime Minister Carney warned of more counter-tariffs if no agreement is reached.
  • Trump halted negotiations due to the proposed digital services tax.
  • Trump threatened new tariffs on Canadian goods unless the tax was dropped.
  • The digital services tax targeted revenue from Canadian users by large US tech companies.
  • Canada prefers a multilateral agreement on digital services taxation.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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