Feed: Slashdot
Feed Link: https://slashdot.org/
---

Title: In Last-Minute Move, Canada Rescinds Digital Services Tax, Restarts
Negotiations

Link: https://news.slashdot.org/story/25/06/30/0453...

"Canada and the United States have resumed trade negotiations," reports
Newsweek, "after Canadian Prime Minister Mark Carney agreed to rescind the
country's digital services tax on U.S. technology companies." The development
follows President Donald Trump's announcement on Friday that he was
suspending all trade talks with Canada "effective immediately" over the tax
policy... Canada's quick reversal signals the high stakes involved in
maintaining trade relationships with the United States, particularly given
the countries' deeply integrated economies. Carney's office confirmed on
Sunday that both leaders have agreed to restart negotiations after Canada
committed to abandoning the 3 percent levy targeting major U.S. tech giants
including Amazon, Google, Meta, Uber, and Airbnb. The tax was scheduled to
take effect Monday and would have applied retroactively, creating an
estimated $2 billion bill for American companies. The conflict escalated
rapidly after Canada's Finance Department confirmed Friday that companies
would still be required to make their first digital tax payments Monday,
despite ongoing negotiations. The tax targeted revenue generated from
Canadian users rather than corporate profits, making it particularly
burdensome for technology companies operating internationally... Canada's
decision to rescind the tax came "in anticipation" of reaching a broader
trade agreement, according to government officials. With negotiations
resuming, both countries will likely focus on addressing broader trade issues
beyond the digital services tax.

Read more of this story at Slashdot.

---
VRSS v2.1.180528