Daily Updates News 
In a significant development for US-Canada trade relations, Canadian Prime Minister Mark Carney has agreed to withdraw the proposed digital services tax on major American technology companies. The decision follows intense diplomatic discussions and trade negotiations between Ottawa and Washington.
According to White House Press Secretary Karoline Leavitt, the move marks a “positive step” in restoring trade talks, which had stalled after President Donald Trump criticized the tax as unfair and detrimental to American businesses.
The proposed tax would have imposed a 3% levy on revenue earned in Canada by tech giants such as Amazon, Google, Meta, and Apple, potentially generating over C$2 billion in its first year. Announced in 2020, the digital tax aimed to address the low corporate tax contributions from large multinational tech firms operating in Canada.
Canadian officials stated that the withdrawal was part of a broader negotiation framework and confirmed that both countries resumed formal trade discussions on Monday. Carney described the decision as strategic, emphasizing the importance of maintaining a stable and cooperative trade relationship with the United States.
Meanwhile, US economic adviser Kevin Hassett acknowledged that dialogue between the two governments was back on track. In a statement, he praised the removal of the tax as a victory for American innovation and job creation.
Canada’s Finance Minister, François-Philippe Champagne, also released a statement affirming the country’s preference for a multilateral approach to digital taxation, in coordination with global partners.
The decision received mixed reactions in Canada. Opposition leader Pierre Poilievre criticized the timing of the reversal, urging the government to push for the removal of US-imposed tariffs on Canadian softwood lumber as part of the new trade discussions.
As global conversations about taxing multinational tech companies continue, this episode highlights the complexities of balancing national interests with international partnerships.
