U.S. and Canada Resume Trade Talks After Digital Services Tax Withdrawal

 The True Post(Web News) Canada faced renewed pressure from U.S. President Donald Trump, who abruptly suspended trade negotiations, calling Canada’s Digital Services Tax (DST) a “direct and blatant attack” on American tech companies like Amazon, Google, and Meta 

. Canada’s DST, which imposed a 3% levy on revenue earned from Canadian users and applied retroactively from 2022, went into effect just days earlier۔

In response, Canada’s Finance Minister François-Philippe Champagne announced the government would rescind the DST, initiating legislation to halt its collection. Canadian Prime Minister Mark Carney and President Trump then agreed to resume trade talks, aiming to finalize an agreement by July 21, 2025, as per the G7 timeline

Prior to the resumption, U.S. Treasury Secretary Scott Bessent signaled that the U.S. might pursue a formal tariff probe under Section 301 of the Trade Act to counterbalance the Digital Services Tax dispute

 

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