Canada drops tax on US tech companies in bid to advance trade talks

Canada has canceled its digital services tax aimed at U.S. tech companies to facilitate trade talks with the U.S. This decision comes after President Trump halted negotiations due to the tax, calling it a "blatant attack."

The two leaders aim to reach a trade agreement by July 21, 2025. The tax was set at 3% on revenue from Canadian users exceeding $20 million and was retroactive to 2022.

Canada, the U.S.'s second-largest trading partner, purchased $349.4 billion in U.S. goods last year while exporting $412.7 billion to the U.S.