President Donald Trump said the US is immediately closing its trade talks with Canada over taxes on digital services that affect American tech companies. He also pledged to announce further tariffs in Canada within the next week, It says, “They will pay to do business with the United States.”
Canada’s Digital Services Tax (DST) is scheduled to come into effect on June 30th, but will be applied retroactively. According to US companies are preparing to pay the Canadian government about $2.7 billion to cover a 3% tax on revenue generated from domestic users. Companies like Amazon, Google, Meta, Uber, Airbnb become eligible for collection as things stand out.
In his post Friday, Trump called DST a “direct and blatant attack on our country.” In trade talks with the US, Canadian finance minister François Philippe Champagne said this month that the country had it. . Trump and Prime Minister Mark Carney previously They were aiming to reach a trade agreement by around July 20th.
Since taking office in January, Trump has used tariffs as a negotiation tactic with other countries. US This week, along with China via rare earth minerals, it is set to reimpose some of the taxes soon.
DST has been the bone of competition between the US and Canada for many years. Biden administration Last year, the collection was collected under the US-Mexico-Canada agreement.
Other jurisdictions have considered or enacted similar taxes. It was reported in May that Germany is on platforms such as Google and Facebook.
