{"id":155252,"date":"2025-06-30T11:08:13","date_gmt":"2025-06-30T11:08:13","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/canada-rescinds-digital-services-tax-after-trump-cuts-off-u-s-trade-talks-nbc-news\/"},"modified":"2025-06-30T11:08:13","modified_gmt":"2025-06-30T11:08:13","slug":"canada-rescinds-digital-services-tax-after-trump-cuts-off-u-s-trade-talks-nbc-news","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/canada-rescinds-digital-services-tax-after-trump-cuts-off-u-s-trade-talks-nbc-news\/","title":{"rendered":"Canada rescinds Digital Services Tax after Trump cuts off U.S. trade talks – NBC News"},"content":{"rendered":"

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Canada has walked back on its digital services tax \u201cin anticipation\u201d of a mutually beneficial comprehensive trade arrangement with the United States, Ottawa announced Sunday night, just one day before the first tax payments were due.
The move comes after U.S. President Donald Trump announced over the weekend<\/a> that he will be \u201cterminating ALL discussions on Trade with Canada<\/a>\u201d in response to Ottawa\u2019s decision to impose a digital services tax<\/a> on American tech firms.
\u201cToday\u2019s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month\u2019s G7 Leaders\u2019 Summit in Kananaskis,\u201d Canadian Prime Minister Mark Carney said in the statement.
The first payments from Canada\u2019s digital services tax, which was enacted last year and applies retroactively to 2022, were initially set to be collected Monday. The tax would have applied to both domestic and foreign tech companies, including U.S. giants such as Amazon<\/a>, Google<\/a> and Meta<\/a> with a 3% levy.
This decision from Ottawa was an about-turn from Canadian officials earlier this month, who said they would not pause the digital services tax<\/a>, despite strong opposition from the U.S.
Canada\u2019s Minister of Finance and National Revenue Francois-Philippe Champagne added, \u201cRescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.\u201d
However, the statement from Canada\u2019s finance ministry also said that Carney \u201chas been clear that Canada will take as long as necessary, but no longer, to achieve that deal.\u201d
The digital services tax was first introduced in 2020 to address a taxation gap where many large tech companies were earning significant revenues from Canadians, but were not taxed.
Ottawa also said that the tax was enacted while it worked with international partners \u2014 including the U.S.\u2014 on a multilateral agreement that would replace national digital services taxes.
Shortly after Trump said that the U.S. was \u201cterminating ALL discussions on Trade with Canada<\/a>,\u201d Treasury Secretary Scott Bessent told CNBC\u2019s Morgan Brennan that U.S. Trade Representative Jamieson Greer would be investigating the tax to \u201cdetermine the amount of harm to the U.S. companies and the U.S. economy in general.\u201d
\u201cCanada has this digital services tax. And several other countries do too. We disagree, and we think that they discriminate against U.S. companies,\u201d Bessent said<\/a> on CNBC\u2019s \u201cClosing Bell: Overtime.\u201d
\u201cSeveral countries within the European Union have digital service taxes. None of them have done those retroactively,\u201d Bessent added.
U.S. goods trade with Canada totaled roughly $762 billion last year, according to the Office of the U.S. Trade Representative.
© 2025 NBCUniversal Media, LLC<\/p>\n

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ProfileSectionsLocaltvFeaturedMore From NBCFollow NBC News news AlertsThere are no new alerts at this timeCanada has walked back on its digital services tax \u201cin anticipation\u201d of a mutually beneficial comprehensive trade arrangement with the United States, Ottawa announced Sunday night, just one day before the first tax payments were due.The move comes after U.S. President Donald […]<\/p>\n","protected":false},"author":1,"featured_media":155253,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-155252","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","entry"],"_links":{"self":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/155252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/comments?post=155252"}],"version-history":[{"count":0,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/155252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media\/155253"}],"wp:attachment":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media?parent=155252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/categories?post=155252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/tags?post=155252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}