Canadian businessman Kevin O’Leeri discussed the future of ‘Big, Beautiful Bill’ on the US and Canada Tariff Battle and ‘The Evening Edit’.
The Canadian government canceled a digital service tax which was determined to be effective on Monday after the President. Donald Trump Tax threatened to break the trade talks between the US and Canada.
The Canadian government adopted its 3% digital service tax a year ago and the collections were scheduled to begin on Monday. Tax was applied to large technical companies, which created more than $ 20 million per year in revenue from some sales of online marketplace services, online advertising, social media services and users associated with users in Canada.
Digital services tax will apply regardless of whether the company is headquarters in Canada, and the major US tech companies in Canada will apply retroactively in 2022, laying a tax burden of about $ 2 billion.
Canada’s digital service tax The Trump received pushbacks from both the administration and the biden administration, which was in the post when it was initially prepared and said that the proposed tax was inconsistent with an existing trade agreement. Tech companies like Amazon, Meta, Google and Apple opposed tax.
Canada to resume business talks with us after cancellation of digital services tax
President Donald Trump threatened to break the business talks with Canada on tax. (Tasos Katopodis / Getty Image / Getty Images)
Trump said on Friday that he would stop trade talks between the US and Canada, in a post on the truth social to trade the northern neighbor of America “as a very difficult country”, he would inform Canada about it Tariff rate In the next seven days.
The Canadian government on Sunday announced that it would stop the digital service tax, stop Tax collection It is scheduled to begin on Monday, while the law is formally prepared by Parliament to reverse this remedy. It states that it would prefer to reach an agreement with other countries on digital service taxes.
Trump stopped trade talks on digital service tax
President Donald Trump and Canadian Prime Minister Mark Carney will resume business talks after the digital service tax is demolished. (Reuters / Kevin Lamark / Reuters)
The Canadian Finance Ministry said in a statement, “DST was announced to address the fact in 2020 that many large technology companies working in Canada could not pay tax on revenue generated from Canadian people.” “Canada’s preference has always been a multilateral agreement related to digital service taxation.”
“In our dialogue on a new economic and security agreement between Canada and the United States, the new government of Canada will always be directed by the overall contribution of any possible agreement for the best interests of Canadian workers and businesses,” said Prime Minister Mark Carney.
Former Canadian Governor Mark Carney became the Prime Minister of Canada after winning the Liberal leadership race in March 2025. (Artur Widak / Nurphoto Getty Images / Getty Images)
America is from Canada Largest trading partnerWhile Canada is the largest importer of American exports and one of the top three sources of US imports.
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The US and Canadian governments agreed to the July 21 deadline for trade talks. US-Maxico-Canada Agreement (Usmca) It is due to rebuilt till next year.
Reuters contributed to this report.
