Canada announced Sunday night it was suspending a tax on U.S. technology firms that had caused President Trump to suspend trade negotiations between the two nations, handing a major victory to the American president.
Canada scrapped a digital services tax that would have hit U.S. tech companies such as Google and Amazon after President Trump halted trade talks and threatened higher tariffs on Canadian imports.
-- NPR (@npr.org) Jun 30, 2025 at 2:07 PM
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Why was Canada even imposing this tariff? Because Trump imposed tariffs.
~Snoofy
You sure?
The proposed Act would implement the Digital Services Tax (DST) announced in the 2020 Fall Economic Statement, further details of which were presented in Budget 2021. Annex 7 to the Budget set out the policy intention, described the main features of the proposed tax, and invited input from stakeholders.
www.canada.ca
Canada's Digital Services Tax Act was enacted on June 20, 2024 and came into effect by Order in Council on June 28, 2024. The new legislation imposes a digital services tax of 3% on digital services revenue exceeding C$20 million. As noted below, the first payment is due on June 30, 2025.
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