Canada Withdraws Digital Services Tax to Restart US Trade Talks, Eyes July 21 Deal
Canada announced Monday that it will repeal its Digital Services Tax (DST), paving the way for renewed trade and security negotiations with the United States. Both countries are now aiming to finalize an agreement by July 21.
Finance Minister François-Philippe Champagne confirmed that the government will stop collecting the DST as of June 30 and will introduce legislation to repeal the Digital Services Tax Act, which targeted major global tech companies operating in Canada. Introduced in 2020, the tax had been a major point of contention for Washington and a barrier to broader trade discussions.
The move follows U.S. President Donald Trump’s abrupt suspension of trade talks last Friday, during which he condemned the DST as a “blatant attack.”
“Rolling back the digital tax will help us move forward with crucial negotiations on a new economic and security framework with the United States,” Champagne said in a statement.
Prime Minister Mark Carney and President Trump have since agreed to resume dialogue, reaffirming their shared objective of crafting a comprehensive agreement that benefits workers and businesses in both countries. The target date aligns with commitments made during the G7 Leaders’ Summit held in Kananaskis earlier this month.
Carney added that Canada is committed to taking “as long as necessary—but no longer” to finalize the deal.
