Canada drops ‘Digital Services Tax’ after Trump terminated trade discussions over ‘egregious’ fee
Last week, President Trump announced the termination of trade discussions with Canada, citing its ‘Digital Services Tax’ as the primary reason
by Summer Lane | June 30, 2025
Canada has officially rescinded its “Digital Services Tax” in the wake of President Donald Trump’s announcement that he would terminate trade negotiations with the nation over the “egregious” fee, perhaps reopening the door for more diplomatic discussions.
According to the Department of Finance Canada, the “DST” will be rescinded “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
Canadian Prime Minister Mark Carney and President Donald Trump will reportedly resume negotiations, the department said. The goal is to come to an agreement on trade by July 21.
“In our negotiations on 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,” Prime Minister Carney said in an official statement.
Last week, Trump slammed Canada for charging high tariffs on American agricultural goods, criticizing the government for being “a very difficult Country to TRADE with,” and accusing them of copying the European Union’s trade model, as reported by LindellTV.
“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period. Thank you for your attention to this matter!” he wrote on Truth Social.
Canada’s digital fee affected digital service providers from around the world, to the tune of a 3 percent tax for large tech businesses interacting with Canadian users.
It is unclear if President Trump will indeed resume negotiations with Canada, or if he will set a tariff baseline for them.
“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” said U.S. Commerce Secretary Howard Lutnick on Monday.
Photo: Adobe Stock
