Canada has temporarily suspended its digital services tax levied on major US technology companies, a move intended to facilitate broader trade negotiations with the United States.
Finance Minister François-Philippe Champagne announced the suspension, stating it would be in effect “in anticipation of a comprehensive trade agreement that is mutually beneficial”. This decision follows a period of tense relations, triggered by the digital services tax which had drawn criticism from Washington.
The move comes alongside an agreement between Prime Minister Carney and US President Trump to resume trade negotiations, with the goal of reaching a resolution by July 21st. President Trump had previously announced the suspension of all trade discussions with Canada last Friday, citing the tax as a key point of contention.
The suspension of the digital services tax represents a significant step towards potential trade liberalization and signals a renewed commitment to reaching a comprehensive trade deal between the two nations. Further details regarding the scope and timing of the revived negotiations are expected shortly.
