US, Canada Resume Trade Talks After Digital Tax Withdrawal

The United States and Canada have agreed to immediately resume trade negotiations following Canada's decision to cancel its Digital Services Tax (DST) targeting U.S. technology companies. This tax, which imposed a 3% levy on revenue generated by American tech firms from Canadian users, was seen by U.S. President Donald Trump as a "direct and blatant attack" on the U.S., prompting him to suspend trade talks. Canadian Prime Minister Mark Carney confirmed the rescindment of the tax and emphasized the intent to reach a mutually beneficial trade agreement by July 21, 2025. Both leaders discussed the issue during the recent G7 summit in Canada, setting a 30-day deadline to conclude talks. The DST had been introduced to ensure taxation of digital companies where profits are made, but its removal paves the way for progress toward a comprehensive economic and security partnership. This development marks a significant step in stabilizing U.S.-Canada trade relations after months of tension.