Canada-US trade talks to resume after Canada rescinded tech tax, Carney says

The digital services tax aimed to impose a 3% charge on revenue generated from Canadian users on companies such as Amazon, Google, Meta, Uber, and Airbnb, starting on Monday.

TORONTO, ON — Canadian Prime Minister Mark Carney announced on Sunday evening that trade discussions with the U.S. have resumed following Canada’s decision to withdraw its proposal to tax American tech companies.

On Friday, U.S. President Donald Trump stated he was halting trade negotiations with Canada due to its intentions to maintain the tax on tech companies, which he described as “a direct and blatant assault on our nation.”

The Canadian government said “in anticipation” of a trade deal “Canada would rescind” the Digital Serves Tax. The tax was set to go into effect Monday.

Carney’s office said Carney and Trump have agreed to resume negotiations.

“Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Carney said in a statement.

Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks.

Trump, in a post on his social media network last Friday, said Canada had informed the U.S. that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada.

The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion U.S. bill due at the end of the month.

“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,” Canadian Finance Minister François-Philippe Champagne said in a statement.

Trump’s announcement Friday was the latest swerve in the trade war he’s launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the U.S. president poking at the nation’s northern neighbor and repeatedly suggesting it would be absorbed as a U.S. state.

Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed on goods from America’s neighbor.

Trump has imposed 50% tariffs on steel and aluminum as well as 25% tariffs on autos. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire.

Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump’s first term.

Copyright 2025 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.     

You May Also Like
Chico library shooter’s dad reveals accused killer’s behavior before attack

Chico Library Shooting Suspect’s Father Reveals Troubling Behavior Before Deadly Attack

The father of alleged Chico library shooter Bradley Sayer has described his…
Dead baby found in portable toilet at music festival in Michigan

Infant Found Dead in Portable Toilet at Michigan Music Festival

ROTHBURY, Mich. — Police in Michigan are asking for the public’s help…
Illinois minimum wage: Chicago, Cook County minimum wage increases take effect Wednesday

Chicago, Cook County Minimum Wage Increases Take Effect Wednesday in Illinois

CHICAGO (WLS) — With the start of July on Wednesday, several new…
Ohio adults arrested after 16 children found in ‘deplorable’ conditions inside home

Ohio Adults Arrested After 16 Children Found Living in Deplorable Home Conditions

Four adults were arrested Tuesday on felony child endangerment charges after authorities…
Couples are spending thousands more on weddings. Here's why.

Why Weddings Cost Thousands More Now—and What’s Driving the Price Surge

Getting married is becoming noticeably more expensive this year, as couples face…
Taylor Swift's wedding secrecy went so far some guests still didn't know location days before ceremony: source

Source: Taylor Swift Kept Wedding Location Secret From Some Guests Until Days Before Ceremony

NEW YORK — As recently as Sunday, even some people on the…
Florida toddler dies after father realizes child was left in SUV during daycare pickup

Florida Toddler Dies After Father Discovers Child Was Left in SUV During Daycare Pickup

Police dashcam captures moment child is ejected from truck during crash Dashcam…
Smarter Systems, Safer Missions: AI, Autonomy and the Warfighter

AI and Autonomous Systems Enhance Warfighter Safety and Mission Success

The next chapter of autonomy will not be shaped by one aircraft,…
Venezuelan nationals charged in $529K ATM jackpotting scheme at I-95 rest stops, feds say

Venezuelan Nationals Charged in $529K ATM Jackpotting Scheme at I-95 Rest Stops, Federal Officials Say

Four Venezuelan nationals have been charged in an alleged “jackpotting” operation that…
New York, California among 25 states suing Trump admin over Medicaid work rule designed to prevent fraud

New York, California Join 25-State Lawsuit Over Trump Medicaid Work Rule aimed at Fraud Prevention

A group of Democratic-led states and local jurisdictions has filed suit against…
U.S. says it won't extend key trade deal with Canada and Mexico

U.S. Rules Out Extending Major Trade Deal With Canada and Mexico

The United States will not move to extend a major trade agreement…
West Coast state sheriff's bait bike sting snares dozens of alleged thieves in just months

West Coast Sheriff’s Bait Bike Sting Nabs Dozens of Suspected Thieves in Months

At least 34 people have been taken into custody after Oregon deputies…