Canada has halted its digital services tax, a 3% levy on tech revenues, due to pressure from the U.S. The move came after President Trump ended trade negotiations, labeling the tax as an attack on the U.S. The tax had been in place since last year but was to be enforced soon. Biden's administration echoed concerns, calling the tax discriminatory and inconsistent with the USMCA. Prime Minister Carney noted this decision supports ongoing negotiations set for 2025 and aims to foster better economic relations with the U.S. while promoting job growth in Canada.
Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis.
Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.
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