Switch the White House newsletter on free of charge
Your guide to what Trump’s second term for Washington, business and world means
Canada has scraped a tax of digital services that the US technology companies aimed at bringing the trade negotiations with his neighbor to go smoothly after President Donald Trump described the submission as a “direct and obvious” attack.
The decision to give up the tax was to deliver 3 percent for sales income for the largest technology companies, before they came into force on June 30th.
“The abolition of the tax of digital services enables negotiations on a new economic and security relationship with the United States to make important progress and strengthen our work to create jobs and create wealth for all Canadians,” said Canadian finance Minister François-Philippe Champagne in a statement on Sunday evening.
Prime Minister Mark Carney said that the tax will “support the negotiations on the timeline on July 21” to go on a trade agreement that was explained on the G7 leader of the month in Kananaskis, Alberta.
Carney and Trump have agreed that they will resume the negotiations, according to the explanation. Trump said the The USA “ended” trade talks With Canada as a retaliation against the tax on technology companies and a bitter North American trade war, inflamed again after months of relaxation.
Trump repeated these symptoms about Fox News on Sunday. “Until the times of such as they drop certain taxes, yes,” he said. “People don’t know that Canada has very bad to do.”
In December 2023, the Canadian budget office of the parliamentary budget over five years estimated $ 7.2 billion (USD 5.3 billion) by USD 7.2 billion (USD 5.3 billion).
The tax, which was first announced in 2020, aimed at companies such as Meta, Netflix and Amazon as well as local companies. Those affected had to submit a return or a fine by the end of June.
While the tax was one of Trump’s main problems, it was also unpopular in some Canadian corporate groups.
“We have warned for many years that the implementation of a one -sided tax of digital services could risk a undermine of the economic relationship of Canada (the USA),” said Goldy Hyder, President of the Business Council of Canada.
Trump’s unprecedented hostility to his northern neighbor – with repeated threats to Canada and the introduction of tariffs in violation of a free trade agreement – dominated the Canadian elections and contributed to driving Carney’s liberal party to victory.
Carney had sworn to face Trump, and last week the finance minister said Ottawa was going to drive the tax.
Carney too this month announced An enormous increase in Canada’s defense spending and made it possible to reach the NATO target of at least 2 percent of GDP this year instead of 2030. This was followed by Trump’s criticism that it and other NATO members did not take their weight.
Canada has an annual trade relationship with the USA worth 1.3 participants and sells most products and services to the USA.
Carney started comprehensive reforms to diversify the economy too much Barriers This prevented the flow of goods and services between the Canadian provinces.
