US-Canada Trade Talks Reignite After Canada's Cancellation of Digital Service Tax

The discussions regarding trade between the United States and Canada are expected to continue shortly after Canada decided to abolish its digital service tax (DST). Kevin Hassett, who heads the White House National Economic Council, shared this information on Monday, highlighting that President Trump had previously asked Canadian Prime Minister Mark Carney to eliminate the DST during the G7 summit held in Canada earlier in the month.

Hassett noted that Canada had conducted studies on the tax and has now agreed to retract it, facilitating the possibility of new negotiations. However, the cancellation comes after Canada's Minister of Finance, Francois-Philippe Champagne, announced on Sunday that the DST, which would have imposed a 3% tax on revenues generated by U.S. multinational corporations like Amazon, Google, and Meta from Canadian users, would not go into effect as planned. This development follows an earlier announcement by President Trump, indicating a halt in all trade discussions with Canada due to the proposed digital services tax on American tech firms.