Canada put into her struggle with US President Donald Trump for tariffs, abolishing the proposed digital services tax (DST) for large technological companies, government announcedField on Friday, Trump Finished trade negotiations Above the gathering, which he called “a direct and egregious attack on our country.” However, discussions resumed Now that DST has left, according to the Prime Minister of Canada Mark Carney.
DST has been operating since last year, but Canada had to collect the first payments totaling about $ 2 billion on June 30. However, they will be stopped. “In order to support these negotiations, the Minister of Finance … announced today that Canada will cancel the tax on digital services (DST) in anticipation of mutually beneficial integrated trade with the United States,” the Ministry of Finance wrote yesterday.
With DST, Canada planned To apply three percent of the content of content from large technical firms that relied on Canadian users. The justification was that 70 percent of the costs of advertising income in the country (about $ 25 billion this year) are sent to American firms such as Google and Meta, but these companies do not pay corporate taxes in Canada. Some of the funds raised in accordance with the DST would be aimed at media companies affected by AD dominance Google and META.
The fee was against not only the US government under the administrations of Biden and Trump, but also enterprises in Canada. Local companies were concerned that this would increase their costs after Google, for example, said that in Canada it would increase AD rates by at least 2.5 percent to cover the cost of DST.
Capitulation is a great victory for Trump and unforeseen for its philanthropists of a technological company. Nevertheless, Canada was scored by the 25 percent tariffs of Trump for the amount of billions for metals, minerals and other goods, so the Karni government probably considered it necessary to sacrifice DST.