Canada withdraws digital services tax proposal to boost US trade talks

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

Canada has decided to rescind its proposed digital services tax, a move aimed at improving relations and advancing trade negotiations with the United States. The tax, which targeted large technology companies, had been a point of contention between the two countries, prompting concerns over potential trade disputes and tariffs. The decision to withdraw the tax comes as Canada seeks to foster a more cooperative trade environment with the US, especially amid ongoing negotiations on broader economic and digital trade issues. Canadian officials hope that this step will facilitate smoother discussions and lead to mutually beneficial agreements in the digital economy sector.

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