Donald Trump has a reason to celebrate. In a rapid turn, Ottawa has collapsed and canceled the controversial tax that aimed at America's technology giants.
“Canada will cancel the digital service tax (DST) in predicting the coverage of useful trade management with the United States.” The Minister of Finance François-Philippe Champagne announced in AA. statement Sunday evening
After the announcement of Prime Minister Mark Carney and President Trump “Agreed that the parties will return to negotiate with the view of the agreement on July 21, 2025”
This is a remarkable and fast victory for Trump, which is shocked by the market on Friday. Post On his truth platform Announced Due to Canadian decisions that will determine digital services for American technology companies “We are canceling all the discussions about trade with Canada immediately.”
For Trump, this surrender gave a very necessary political victory during a crisis. His president was determined by trade policy. “America for the first time” that is aggressive, launching a highly bet on trade with Chinese and European goods taxes. This face -to -head format is due to the date of July 9, guidelines for countries around the world to summarize new trade agreements with the United States or face a steep new wave. “Taxing each other” forced important partners such as Canada to fold quickly and reveal to the public to send powerful messages to other negotiation partners.
The victory also helps the Trump project stronger in front of the house after the political showdown. His unique legal priority is “Big Beautiful Bill”. One “faces severe criticism, even from all Elon Musk formats, more than large spending and deeper cutting into popular programs. Having a bone forced to guide the broken Republican party to receive the bill through Congress in order to be clearly victorious to foreign government in non -popular technology taxes.
The confrontation is in the digital service tax of Canada. This measure is 3% tax from the Canada's income from large digital companies such as Amazon, Google and Meta. Tax has been effective since last year. But the first payment will be due on Monday 30 June
“On June 30, 2025 will be stopped,” Champagne said in his statement.
Tax is an important point of dispute. While Canada is not the only country that uses such measurements, joining the country, such as France, Italy and the United Kingdom, the US government sees these taxes as unfair goals. In the past few weeks, Canada and America's business groups, including the US Industry Industry Organization and an American officials have signed a letter calling for the candidate government to cancel or suspend tax.
The Prime Minister Mark Carney tries to determine the decision framework as a wider and more useful agreement. “In our negotiations about the economic and security relationships between Canada and the new USA, the new Canadian government will receive advice from the overall participation of any agreement for the best benefit of the Labor and Carry's business”.