Canada canceled a digital tax that would have hit major US technology companies hard. The tax sparked anger from President Trump who ended trade discussions with Ottawa. Companies like Alphabet and Amazon faced paying billions of dollars under this new rule. Trump warned Canada about coming tariffs after the tax dispute began. Officials said the canceled tax would have brought Canada about 4.2 billion US dollars over five years.
Finance Minister Francois-Philippe Champagne made the announcement on Sunday about removing the tax. He said Canada wanted to work toward a better trade deal with America. Trump and Canadian Prime Minister Mark Carney decided to start talks again. Both leaders set July 21 as their target date for reaching an agreement. The White House has not commented on the new development.
US Treasury Secretary Scott Bessent had asked Canada to stop the tax as a sign of good faith. Trump has put heavy tariffs on many countries since returning to office. Canada supplies most foreign steel and aluminum to the United States. The country faces different tariff problems beyond the digital tax issue. Carney said Canada will change its metal tariffs if no deal happens within 30 days.
The two leaders met during a recent international summit. Other world leaders urged Trump to reduce his trade war actions. Many countries face higher US tariffs starting July 9. Current tariffs stand at 10 percent but could increase significantly. Officials believe some trade agreements might finish before the summer deadline.
Finance Minister Francois-Philippe Champagne made the announcement on Sunday about removing the tax. He said Canada wanted to work toward a better trade deal with America. Trump and Canadian Prime Minister Mark Carney decided to start talks again. Both leaders set July 21 as their target date for reaching an agreement. The White House has not commented on the new development.
US Treasury Secretary Scott Bessent had asked Canada to stop the tax as a sign of good faith. Trump has put heavy tariffs on many countries since returning to office. Canada supplies most foreign steel and aluminum to the United States. The country faces different tariff problems beyond the digital tax issue. Carney said Canada will change its metal tariffs if no deal happens within 30 days.
The two leaders met during a recent international summit. Other world leaders urged Trump to reduce his trade war actions. Many countries face higher US tariffs starting July 9. Current tariffs stand at 10 percent but could increase significantly. Officials believe some trade agreements might finish before the summer deadline.
