Canadian businessman Kevin O’Leary discusses the US-Canadian tariff battle and future of the “big, beautiful bill” on “editing the evening.”
Canadian Prime Minister Mark Carney will resume trade talks with US President Donald Trump after Canada said it had withdrawn its digital services tax late Sunday on Thursday on Thursday.
The Canadian government said it is withdrawing the Digital Services Tax “in anticipation of a mutually beneficial comprehensive trade agreement with the United States.”
“Consistent with this lawsuit, Prime Minister Carney and President Trump have agreed to the parties to resume negotiations with the view that they will agree to the contract by July 21, 2025,” Canada’s Treasury said in a news release.
It added that the collection on June 30, 2025 was suspended and the law is pending to revoke the Digital Services Tax Act.
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President Donald Trump will meet with Canadian Prime Minister Mark Carney at the G7 Summit in Kananaskis, Alberta, Canada on June 16, 2025. (Reuters/Kevin Lamarck/Reuters)
The Canada Digital Services Tax came into effect in June 2024 and requires that, whether headquartered in Canada, be paid a 3% tax on the revenue generated by engaging with online users in Canada, if you meet certain conditions.
Trump ended trade talks with Canada on Friday, citing digital services taxes on American tech companies, including Amazon, Meta, Google and Apple, among other things.
“They are copying the European Union, which obviously did the same thing, and are currently being discussed with us. Based on this terrible tax, we will end all discussions about trade with Canada here and it will take effect soon,” Trump wrote in a post on the True Society.
Canadian Prime Minister Mark Kearney will speak at a campaign rally held in Calgary, Alberta, Canada on Tuesday, April 8, 2025. (Gavin John / Bloomberg / Getty Images)
Trump said the administration will notify Canada for the “next seven days period.”
In his post, the president added that Canada is a “very difficult country to trade”, and claims that Canada is collecting up to 400% tariffs on US dairy products.
The breakdown of the trade talks follows a G7 meeting of the two leaders earlier this month, with Carney saying he agreeing to close the new economic agreement within 30 days.
Abu Dhabi, United Arab Emirates – May 16: President Donald J. Trump will speak at the UAE Investment Forum on May 16th with US Treasury Secretary (R) of Scott Bescent (R) of Qasr Al Watan, Presidential Palace of the United Arab Emirates. (Photo: Win McNamee / Getty Images / Getty Images)
The United States is Canada’s largest trading partner, Canada is the largest importer of US exports and is one of the top three sources of US imports.
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Canada has been evading Trump’s broad tariffs imposed in April, but faces a 50% steel and aluminum obligation.
Eric Revell and Reuters from Fox Business contributed to this report.
