Canada rescinds digital services tax to resume negotiations with U.S.
OTTAWA — Finance Minister François-Philippe Champagne says Canada is rescinding the digital services tax and will resume trade negotiations with the United States.
The announcement was made in a statement following a phone call between Prime Minister Mark Carney and U.S. President Donald Trump.
The move comes three days after Trump said he was terminating all trade discussions with Canada because of the tax.
Champagne's statement says the tax is being rescinded in anticipation of those trade talks resuming and Canada is still aiming for a deal by July 21 -- the deadline set by Carney and Trump at the G7 summit.
A spokeswoman for Carney says Champagne also spoke today with U.S. Treasury Secretary Scott Bessent.
The first payment under the digital services tax was to be submitted on Monday, forcing tech giants such as Amazon, Google and Meta to pay a three per cent levy on revenue from their Canadian users.
This report by The Canadian Press was first published on June 29, 2025.
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