Canada Rescinds Tech Tax, US-Canada Trade Talks Resume

Trade negotiations between the United States and Canada have resumed after Canada withdrew its planned 3% digital services tax targeting American technology companies such as Amazon, Google, and Meta. US President Donald Trump had suspended talks, calling the tax a "direct and blatant attack" on the US and warning of retaliatory tariffs. The tax would have applied retroactively, potentially costing US firms $2 billion. Following discussions between Canadian Prime Minister Mark Carney and President Trump, both sides agreed to continue negotiations aiming for a trade agreement by July 21, 2025, as set at the G7 summit. Canadian officials, including Finance Minister François-Philippe Champagne, emphasized that rescinding the tax would facilitate progress toward a comprehensive economic and security relationship with the US. This development marks a step toward easing tensions and stabilizing trade relations between the two countries amid broader tariff disputes initiated by President Trump since his second term began.