Canada rescinds digital services tax to advance trade negotiations with US

OTTAWA - Canadian Finance Minister Francois-Philippe Champagne announced Sunday that Canada will rescind its Digital Services Tax (DST) as it prepares for a broader trade agreement with the United States.

According to the Finance Ministry, Prime Minister Mark Carney and US President Donald Trump have agreed to resume negotiations, aiming to finalize a deal by July 21.

Champagne will soon introduce legislation to repeal the Digital Services Tax Act, the ministry said in a statement.

Carney described the negotiations as "complex" in response to Trump's announcement that the United States would terminate all trade talks with Canada and consider new tariffs.

"We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney told local media.

Trump said the United States was halting talks in retaliation for Canada's planned digital services tax on US tech firms.

Canada's digital services tax on US technology companies is a direct and blatant attack on the United States, Trump said in a social media post.

The tax, set to take effect on Monday, would have the US companies like Amazon, Google and Meta impose a 3 percent levy on revenue earned from Canadian users.