Canada Rescinds Digital Service Tax

President Trump announced over the weekend that he will be “terminating all discussions on trade with Canada.”

Canada has rescinded its digital services tax ahead of a possible comprehensive trade agreement with the U.S. The move comes just one day before the first tax payments were due.

The tax would have applied to both domestic and foreign tech companies with a 3% levy.

Canada’s retraction comes after President Trump announced over the weekend that he will be “terminating all discussions on trade with Canada” in response to Ottawa’s decision to impose the digital services tax on american tech firms, such as Amazon, Google, Meta, and more.

Canada’s prime minister said the the take back will support a resumption of negotiations toward the July 21 timeline set out at the G7 leaders’ summit.