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 was intended to target large technology companies, faced criticism from the US, which argued it unfairly targeted American firms and threatened to impose tariffs in response. The decision to withdraw the tax proposal signals Canada's willingness to engage more constructively in trade discussions with the US. Officials hope that this step will help resolve ongoing disputes over digital taxation and foster a more cooperative environment for future trade agreements between the two countries.

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