Image Prompt:
A handshake between a Canadian and an American diplomat in a meeting room, with a subtle hint of technology, such as a laptop or a smartphone, on the table, surrounded by flags of both countries.
Summary
Canada has rescinded its 3% digital services tax on tech companies, including US firms, after President Trump threatened to suspend trade talks and impose tariffs, paving the way for the resumption of negotiations with a target date of July 21, 2025.
Key Points
- Canada's digital services tax was set to be collected on US tech companies, generating around $2.7 billion
- US President Donald Trump canceled trade talks, citing the tax as a 'direct and blatant attack'
- Canada's decision to rescind the tax aims to revive stalled trade negotiations with the US