Canada Prime Minister Mark Carney said on Sunday night that his country resumed trade negotiations with the United States after reversing his intention to apply new taxes to American technology giants, which led President Donald Trump to interrupt conversations on Friday.
“In our negotiation of a new economic and security relationship between Canada and the United States, the new government of Canada will always be guided by the total contribution of any possible agreement to the best interests of Canadian workers and companies,” Carnery said in a statement.
Canada’s Finance Department announced in a statement that it would revoke the Digital Services Tax (STD) in anticipation of a “mutually beneficial” trade agreement with the United States.
Canadian finance minister François-Philippe Champagne had warned last week that digital tax was still in force and that the first payment, which would affect large American multinationals such as the goal, would win on Monday (30).
Last Friday, Trump interrupted commercial negotiations with Canada with immediate effect, after criticizing the country by the tax, which would be retroactively since 2022 and would be 3% of revenues over $ 20 million obtained by companies with digital services for Canadian residents.
“Today’s announcement will support the resumption of negotiations until July 21, 2025, data defined at this month’s G7 leader summit in Kananaskis,” said Carney.
The Canadian government noted that by 2020, the STD announced to address the fact that “many large technology companies” operating in Canada do not pay other taxes on the profits they make from Canadians. Although it indicated that Canada’s preference has always been for a multilateral agreement ”related to digital taxes, it will now revoke the law that created the tax.
Since his return to the White House, Trump has been looking for new fares for his partners in the United States-Mexico-Canada Agreement (T-MEC), citing the commercial deficit and drug flow as fentanil and immigrants as arguments.
Faced with political change, Carnery, who took office on March 14, announced in April the beginning of negotiations for a new trade and security agreement between Canada and the United States.
