Latest news with #digitalTax
CBC
an hour ago
- Business
- CBC
Trump terminates Canada trade talks ‘effective immediately'
U.S. President Donald Trump has announced the end of trade talks with Canada 'effectively immediately,' blaming Canada's digital services tax on technology companies, calling it a 'direct and blatant attack on our country.'
South China Morning Post
7 hours ago
- Business
- South China Morning Post
Trump says US to tell countries ‘what they have to pay', sees China, India deals soon
With the July 9 deadline for 'Liberation Day' tariffs nearing, US President Donald Trump said on Friday that Washington would inform countries 'what they have to pay' to do business with America 'over the next week and a half or so'. His remarks came hours after Treasury Secretary Scott Bessent suggested trade talks could continue to September. Trump also directed a new salvo at Canada, announcing an immediate halt to trade talks in retaliation for Ottawa's plan to introduce a digital trade tax that could largely target American tech firms. 'At a certain point, over the next week and a half or so, or maybe before, we're going to send out a letter. We talked to many other countries, and we are just going to tell them what they have to pay to do business in the United States. And it's going to go very quickly,' Trump told reporters. He said he sent the letter because Washington has '200 countries' to negotiate with and the administration 'can't do that'. Trump indicated he expected agreements with China and India soon.
Al Jazeera
10 hours ago
- Business
- Al Jazeera
Trump says US ending all negotiations with Canada over digital tax
United States President Donald Trump has said the US is immediately ending trade talks with Canada in response to the country's digital services tax on technology companies, in a clear escalation of pressure tactics. Trump in a post on his Truth Social platform on Friday called the Canadian tax a 'direct and blatant attack on our country' and said: 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately'. He added, 'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.' Canada had approved the Digital Services Tax act on June 20, 2024 and it came into force shortly after on June 28. Under this, Canada will charge a tax of 3 percent of the digital services revenue a firm makes from Canadian users above 20 million Canadian dollars ($14.6m) in a calendar year. Businesses have been calling for a pause saying it would increase the cost of providing services as well as raise the wrath of the US government. But the Canadian federal government so far has refused and is proceeding with the plans. The Canadian Revenue Authority is set to start collecting the tax on Monday and will cover revenue retroactively to 2022. Last week finance minister Francois-Philippe Champagne suggested to reporters that the digital tax may be negotiated as part of broader, ongoing US-Canada trade discussions, Bloomberg news reported. Those discussions seemed to have been going well and a trade deal was expected in July. Now the status of that is unclear. 'This is definitely escalation from Trump,' said Vina Nadjibulla, vice president of research and strategy at the Asia Pacific Foundation of Canada. 'But we have seen this tactic before. Canada will need to work behind the scenes to find an off ramp without giving into his demands,' she said. 'Digital tax is also part of Trump's negotiations with the European Union. Canada will need to coordinate with the EU and other partners as it contemplates its response,' Nadjibulla added. Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera that while Trump's declaration was unfortunate, it was 'not surprising' adding, it would also act as a scare tactic for the EU with whom the US is still negotiating its trade deal. Tariffs on Canadian goods are bad for both the US and Canada as they increase the cost for businesses and ultimately consumers, experts say.
Associated Press
10 hours ago
- Business
- Associated Press
Trump says he's terminating trade talks with Canada over tax on technology firms
WASHINGTON (AP) — President Donald Trump said he's immediately suspending trade talks with Canada over its plans to continue with its tax on technology firms. Trump said Friday in a post on his social media network Canada had just informed the U.S. that it was sticking to its plan to impose the tax set to take effect Monday. Canada's digital services tax requires Canadian and foreign businesses that engage with online users in Canada. The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month.
Bloomberg
2 days ago
- Business
- Bloomberg
Treasury Close to Deal That Would Make ‘Revenge Tax' Irrelevant
The Treasury Department is nearing a deal that would make the so-called 'revenge tax' irrelevant, the agency's second-in-command said, a development that could bring great relief to Wall Street investors worried about punitive tax measures on foreigners. 'We continue to have negotiations with our OECD partners and continue to hope that in the very short run we have a breakthrough that would make conversations about 899 irrelevant,' Deputy Treasury Secretary Michael Faulkender said in an interview, referring to a part of President Donald Trump's signature tax legislation that would impose a levy on foreign companies and investors from countries that the US determines have been unfairly imposing digital taxes on American technology companies.
