Latest news with #TradewithCanada
The Market Online
a day ago
- Business
- The Market Online
@ the Bell: Canada drops tech tax to revive U.S. trade talks
Canada's main stock index clocked a new record high on Monday, lifted by renewed trade discussions between Washington and Ottawa that lifted investor sentiment. Late Sunday, Canada withdrew its planned digital services tax—set to target major US tech companies—just hours before it was scheduled to take effect. The move was aimed at reviving stalled trade talks with the United States. According to the federal finance ministry, Prime Minister Mark Carney and US President Donald Trump are expected to resume negotiations, with a goal of reaching a deal by July 21. Trump had abruptly halted the talks on Friday, calling the tax a 'blatant attack' on American firms. US markets also rallied, as optimism around trade talks added to a strong month for Wall Street, pushing stocks toward new record highs. Monday's gains followed Canada's decision to cancel the digital services tax, which had prompted Trump to announce on Friday that the US was 'terminating ALL discussions on Trade with Canada.' The tax, which was set to take effect Monday, would have impacted companies like Alphabet's Google (NASDAQ:GOOGL), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN). The Canadian dollar traded for 73.32 cents US compared to 72.86 cents US on Friday. US crude futures traded $0.51 lower at US$65.01 a barrel, and the Brent contract lost $0.14 to US$67.63 a barrel. The price of gold was up US$18.74 to US$3,293.72. In world markets, the Nikkei was up 336.60 points to ¥40,487.39, the Hang Seng was down 211.87 points to HK$24,072.28, the FTSE was down 37.95 points to ₤8,760.96, and the DAX was down 123.61 points to €23,909.61. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein.
NBC News
2 days ago
- Business
- NBC News
Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks
Canada has walked back on its digital services tax 'in anticipation' of a mutually beneficial comprehensive trade arrangement with the United States, Ottawa announced Sunday night, just one day before the first tax payments were due. The move comes after U.S. President Donald Trump announced over the weekend that he will be 'terminating ALL discussions on Trade with Canada ' in response to Ottawa's decision to impose a digital services tax on American tech firms. '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,' Canadian Prime Minister Mark Carney said in the statement. The first payments from Canada's digital services tax, which was enacted last year and applies retroactively to 2022, were initially set to be collected Monday. The tax would have applied to both domestic and foreign tech companies, including U.S. giants such as Amazon, Google and Meta with a 3% levy. This decision from Ottawa was an about-turn from Canadian officials earlier this month, who said they would not pause the digital services tax, despite strong opposition from the U.S. Canada's Minister of Finance and National Revenue Francois-Philippe Champagne added, '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.' However, the statement from Canada's finance ministry also said that Carney 'has been clear that Canada will take as long as necessary, but no longer, to achieve that deal.' The digital services tax was first introduced in 2020 to address a taxation gap where many large tech companies were earning significant revenues from Canadians, but were not taxed. Ottawa also said that the tax was enacted while it worked with international partners — including the U.S.— on a multilateral agreement that would replace national digital services taxes. Shortly after Trump said that the U.S. was 'terminating ALL discussions on Trade with Canada,' Treasury Secretary Scott Bessent told CNBC's Morgan Brennan that U.S. Trade Representative Jamieson Greer would be investigating the tax to 'determine the amount of harm to the U.S. companies and the U.S. economy in general.' 'Canada has this digital services tax. And several other countries do too. We disagree, and we think that they discriminate against U.S. companies,' Bessent said on CNBC's 'Closing Bell: Overtime.' 'Several countries within the European Union have digital service taxes. None of them have done those retroactively,' Bessent added.
CNBC
2 days ago
- Business
- CNBC
Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks
Canada has walked back on its digital services tax "in anticipation" of a mutually beneficial comprehensive trade arrangement with the United States, Ottawa announced Sunday night. The move comes after U.S. President Donald Trump announced over the weekend that he will be "terminating ALL discussions on Trade with Canada" in response to Ottawa's decision to impose a digital services tax on American tech firms. The statement from Canada said that Prime Minister Mark Carney and Trump have agreed that they "will resume negotiations with a view towards agreeing on a deal by July 21, 2025."
