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Canada Scraps Digital Services Tax to Boost Trade Talks

6/30/2025

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Summary

Story summary

In a significant shift, the Canadian government has decided to scrap its Digital Services Tax, originally set to launch Monday. This move comes in response to U.S. President Donald Trump's warning to freeze trade talks. By eliminating the proposed 3% levy on U.S. tech firms, Canada hopes to pave the way for a robust trade agreement by July 21, 2025.

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Story summary

In a significant shift, the Canadian government has decided to scrap its Digital Services Tax, originally set to launch Monday. This move comes in response to U.S. President Donald Trump's warning to freeze trade talks. By eliminating the proposed 3% levy on U.S. tech firms, Canada hopes to pave the way for a robust trade agreement by July 21, 2025.