Canada Scraps Digital Services Tax to Revive Trade Talks with US

Edited by: Olga Sukhina

On June 29, 2025, the Canadian government repealed the Digital Services Tax (DST). This move aims to restart trade negotiations with the United States.

The DST, implemented on June 28, 2024, imposed a 3% tax on digital revenues generated in Canada by companies with over 750 million euros in global revenue and over 20 million Canadian dollars in Canadian digital service revenue. The tax primarily targeted major US tech companies like Amazon, Google, and Meta.

The repeal of the DST is seen as a key step to ease trade tensions and promote economic cooperation. Both countries are committed to ongoing negotiations to reach a mutually beneficial trade agreement, with a target of July 21, 2025, as agreed at the G7 summit in Kananaskis.

Sources

  • TVA Nouvelles

  • Canada rescinds digital services tax to advance broader trade negotiations with the United States

  • Canada rescinds digital services tax after Trump cuts off US trade talks

  • What is Canada’s digital tax and why is Trump killing trade talks over it?

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