Canada has rescinded its Digital Services Tax (DST) targeting U.S. technology firms. This move is intended to foster broader economic and security negotiations between Canada and the United States.
The DST, planned to take effect on June 30, 2025, would have imposed a 3% tax on digital services revenue from Canadian users. U.S. President Donald Trump had previously criticized the tax, leading to the termination of trade discussions.
Following Canada's decision, Prime Minister Mark Carney and President Trump have agreed to resume trade negotiations. They aim to reach a comprehensive agreement by July 21, 2025. This development is a key moment in Canada-U.S. trade relations.