Canada scraps digital services tax to advance trade talks with US

        On June 29 local time, the Canadian Ministry of Finance stated in a statement that Canada has canceled the digital services tax to advance trade negotiations with the United States. The Canadian Ministry of Finance said that Canadian Prime Minister Carney and US President Trump will resume trade negotiations with the aim of reaching an agreement by July 21. On June 27, US President Trump announced that due to Canada's imposition of a digital services tax on US technology companies, the United States will stop all trade negotiations with Canada and will soon announce new tariff rates on Canada. On the same day, US Treasury Secretary Bessent said that he was considering imposing an additional $2 billion in digital services tax from Canada. Canada's digital services tax has been implemented since last year, but the first batch of taxes will be collected starting from June 30. According to the plan, the Canadian government will levy a 3% tax on the income of technology companies from providing digital services to Canadian users or selling the data of Canadian users, and the tax will be retroactive to the income of relevant companies in 2022. This means that US companies that meet the tax criteria will face $2 billion in taxes by the end of July. The US government has always opposed this tax.