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Canada rescinds digital services tax in push for new trade pact with the U.S.

The decision was announced late Sunday only hours before the tax was set to be collected, and after U.S. Donald Trump announced Friday he had terminated trade negotiations with Canada largely because of the levy.

Published Jun 30, 2025 at 1:23pm

Marco Vigliotti
By
Marco Vigliotti
Canada rescinds digital services tax in push for new trade pact with the U.S.

Prime Minister Mark Carney speaks during a meeting with U.S. President Donald Trump on the sidelines of the G7 Summit on Monday, June 16, 2025, in Kananaskis, Alta. (AP Photo/Mark Schiefelbein)

The federal government has rescinded Canada’s digital services tax in a last minute move to salvage imperilled trade talks with the Americans.

The decision was announced late Sunday only hours before the tax was set to be collected, and after U.S. Donald Trump announced Friday he had terminated trade negotiations with Canada largely because of the levy.

“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” Prime Minister Mark Carney said in a statement.

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