‘Trade talks resume with US after Canada rescinds tech tax,’ says Canadian PM Carney

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

Tornoto | Updated: June 30, 2025 08:59 AM IST

2 min read

In his special message, PM Carney praised the contribution of Hindu Canadians to the country's diversity and cultural strength. (Photo: AP)

The trade talks between Canada and the United States resumed after Canada rescinded its plan to tax US technology firms, Canadian Prime Minister Mark Carney said late Sunday, AP reported.

Calling it “a direct and blatant attack on the US”, President Donald Trump on Friday said that he was suspending trade talks with Canada over its plans to continue with its tax on technology firms. However, 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.

In a statement, Canadian PM said, “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.”

Trump travelled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks.

In a social media post, Trump 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 US 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.

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Canada and the US have been discussing easing a series of steep tariffs Trump imposed on goods from America’s neighbour. Trump’s announcement Friday was the latest swerve in the trade war he’s launched since taking office for a second term in January.

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