Ottawa, June 28, 2025 - The G7 leaders finalized a historic agreement on a global minimum tax, setting a 15% rate for multinational corporations with revenues exceeding 750 million euros. This agreement aims to combat tax avoidance and ensure fair international competition.
However, the United States secured a "parallel solution" exempting US-controlled groups from income inclusion and undertaxed profit rules, acknowledging current US tax regulations. The Canadian presidency's statement emphasized the facilitation of further progress in stabilizing the international tax system.
Simultaneously, US President Donald Trump announced the immediate halt of all trade talks with Canada. This decision was a response to Canada's implementation of a 3% digital services tax targeting major US tech companies, retroactive to 2022. Trump vowed to impose new tariffs on Canadian goods within a week.
In response, Canada announced a package of tariffs worth 155 billion Canadian dollars to protect its economic interests. The escalating trade tensions between the US and Canada highlight the ongoing challenges in managing international fiscal policies and safeguarding national economic interests.