Canada resumes talks with U.S.

Canada's new government is engaged in complex negotiations on a new economic and security partnership with the United States, focusing on achieving the best possible deal for Canadian workers and businesses, the Government of Canada says.

Canada will take as much time as necessary to reach this agreement, but no more.

Therefore, to support these negotiations, Finance and National Revenue Minister François-Philippe Champagne announced the elimination of the digital services tax in anticipation of a mutually beneficial comprehensive trade agreement with the United States.

Following the decision, Carney and U.S. President Donald Trump agreed that the two sides will resume negotiations with the goal of reaching an agreement by July 21.

Collection of the tax will cease as of June 30, and Champaign will soon file a bill to repeal the Digital Services Tax Act.

The tax was announced in 2020 to address the problem that many large tech companies operating in Canada may not pay taxes on revenue generated from Canadians.

“In negotiating a new economic and security relationship between Canada and the United States, Canada's new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” Carney said.

Photo: Bloomberg.