Canada withdraws digital services tax proposal amid US talks

Source: US, Canada to resume trade talks after Ottawa drops digital tax (2025-06-30)

Canada has decided to rescind its digital services tax proposal as part of ongoing negotiations with the United States to resolve trade tensions related to digital taxation. The move aims to facilitate progress in bilateral discussions and avoid escalating tariffs or trade disputes over digital economy policies. The decision comes ahead of upcoming trade talks, with Canadian officials emphasizing their commitment to reaching a mutually agreeable solution. The US has previously criticized digital taxes implemented by various countries, arguing they unfairly target American technology companies. Canada's withdrawal signals a willingness to collaborate and find a coordinated approach to taxing digital services internationally.

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