Canada made a major announcement on Sunday as it seeks to de-escalate tensions between the United States in the midst of an ongoing trade war.
Canadian Finance Minister François-Philippe Champagne announced that the country would be rescinding its Digital Services Tax (DST) in an attempt to bring President Donald Trump back to the table in trade negotiations.
‘The Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States. Consistent with this action, Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025’ the Canadian Department of Finance declared on Sunday.
The move has been widely seen as an attempt to de-escalate tensions between Canadian Prime Minister Mark Carney and President Trump after Trump walked away from negotiations last Friday. (RELATED: U.S. and U.K. Struck a Truly Historic Deal)
The Digital Services Tax would have levied a 3% charge on US tech companies bringing in over $20 million in revenue in Canada. (RELATED: Trump Signs Executive Order to Lower Drug Prices by Tying Them to Foreign Rates)
The move is a departure from Carney’s confrontational posture towards Trump during his campaign for Prime Minister and his rhetoric during previous meetings with the President. In a viral moment during a meeting between the two heads of state, Carney chastised Trump by telling him that Canada is ‘not for sale’.
Canada’s latest concession comes on the heels of another significant trade war victory after China and the United States agreed to a tentative trade deal. In the trade deal, the United States will maintain 30% tariffs on Chinese goods, while China will keep its tariffs at 10%.
