Trump’s threat to end trade negotiations with Canada over new tax brings results
President Donald Trump’s announcement that he was ending trade negotiations with Canada over a new digital services tax imposed by America’s northern neighbor has brought results: The suspension of that tax.
According to an announcement from the Department of Finance Canada, those negotiations had been underway.
“To support those negotiations, the minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,” a government statement confirmed.
“Consistent with this action, Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025.”
Canada’s statement said, “The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians. Canada’s preference has always been a multilateral agreement related to digital services taxation. While Canada was working with international partners, including the United States, on a multilateral agreement that would replace national digital services taxes, the DST was enacted to address the aforementioned taxation gap.”
“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses. 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,” said Mark Carney, the prime minister.
Government of Canada rescinds digital services tax to advance broader trade negotiations with the United States.
https://t.co/dTb9YDDA7u pic.twitter.com/mdFSMKma6L
— Finance Canada (@FinanceCanada) June 30, 2025
BREAKING: Canada has RESCINDED their digital service tax on Americans in an effort to resume trade talks with President Trump, per Bloomberg
President Trump wins AGAIN pic.twitter.com/jKHKBOjW5V
— Nick Sortor (@nicksortor) June 30, 2025
WND had reported only days ago that Trump had halted those negotiations and said a new tariff for Canada would be imposed because of the DST.
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BREAKING: Trump has just said Canada is about to be slapped with increased tariffs after he learned they’re imposing a new Digital Services Tax on the U.S.
He also CANCELED all ongoing trade talks with Canada. pic.twitter.com/zlRkKULhta
— Charlie Kirk (@charliekirk11) June 27, 2025
“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,” Trump said at the time on social media. “They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.”