The Canadian government said \u201cin anticipation\u201d of a trade deal \u201cCanada would rescind\u201d the Digital Serves Tax. The tax was set to go into effect Monday.<\/p>\n
Carney and Trump spoke on the phone Sunday, and Carney\u2019s office said they agreed to resume negotiations. <\/p>\n
\u201cToday\u2019s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month\u2019s G7 Leaders\u2019 Summit in Kananaskis,\u201d Carney said in a statement. <\/p>\n
Carney visited Trump<\/a> in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit<\/a> in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks.<\/p>\n Trump, in a post on his social media network last Friday, said Canada had informed the U.S. that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. <\/p>\n <\/p>\n <\/p>\n <\/a><\/p>\n <\/p>\n <\/a><\/p>\n The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion U.S. bill due at the end of the month.<\/p>\n \u201cRescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,\u201d Canadian Finance Minister Fran\u00e7ois-Philippe Champagne said in a statement. <\/p>\n Champagne also spoke with U.S. Treasury Secretary Scott Bessent on Sunday. <\/p>\n Trump\u2019s announcement Friday was the latest swerve in the trade war<\/a> he\u2019s launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the U.S. president poking at the nation\u2019s northern neighbor and repeatedly suggesting it would be absorbed as a U.S. state<\/a>.<\/p>\n Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed<\/a> on goods from America\u2019s neighbor.<\/p>\n<\/p>\n
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