WORLD NEWS – Canada drops digital services tax to revive halted trade negotiations with the U.S.

Ananya Roy, News Writer

Canada has scrapped its planned 3% digital services tax on major U.S. tech firms to restart trade negotiations with the United States. The tax targeting companies like Amazon, Meta, Apple, and Google on revenues over $20 million from Canadian users, and retroactive to 2022, was set to take effect soon. President Donald Trump had halted trade talks over the proposed levy, but talks have now resumed following Canada’s decision to withdraw the tax.

Prime Minister Mark Carney and Trump aim to reach a new trade deal by July 21, according to Canada’s finance ministry. Canada remains the U.S.’s second-largest trading partner and top export market, purchasing $349.4 billion in goods last year. Though it had previously avoided sweeping tariffs, Canada currently faces 50% U.S. duties on steel and aluminum exports.