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Canada rescinded its 3% digital services tax that was due to take effect on Monday morning after President Donald Trump threatened to halt trade talks.
Photo: Ludovic Marin/Press Pool Canada said it would rescind a digital-services tax in a bid to salvage trade discussions with the U.S. after President Trump paused talks on Friday.
The federal government said it will rescind the digital services tax "in anticipation" of coming to a trade deal with the U.S., following President Donald Trump cutting off talks.
Canada rescinded the Digital Services Tax just hours before it was to go into effect, backing down after President Trump had ended trade talks over the issue.
Canada is expected to resume trade talks with the U.S. after the Canadian government said late Sunday it was rescinding a digital services tax on American tech companies.
Canada withdrew its digital services tax set to take effect Monday that would have affected companies such as Google, Microsoft and Meta Platforms. DST had been in the works for years.
Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday in a bid to advance stalled trade negotiations.
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