Canada rescinds digital services tax to resume talks with the United States

Canada has rescinded its digital services tax in hopes to advance trade negotiations with the U.S., Canada’s finance ministry said in a statement on Sunday.

“Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” said Minister of Finance François-Philippe Champagne, in a social media post.

Prime Minister Carney and President Trump have agreed that their teams will resume negotiations with a view towards agreeing on a deal by July 21, 2025, the ministry said in their statement.

The digital services tax would have required technology companies such as Meta, Amazon, Meta, Google, Airbnb, and Uber to pay a tax on revenue earned from engaging with online users in Canada.