U.S. to restart trade negotiations with Canada immediately, White House says
The United States is set to restart trade negotiations with Canada following Canada’s decision to scrap its digital services tax (DST) targeting U.S. technology firms. White House economic adviser Kevin Hassett confirmed on Monday that talks would resume immediately now that the tax has been removed.
President Donald Trump had previously asked Canada to eliminate the tax during the G7 meeting in Canada. With the tax set to impose a three per cent levy on revenues from Canadian users for companies like Amazon, Google, Meta, Uber, and Airbnb, Trump had halted all trade discussions with Canada last Friday.
The DST, if implemented, would have resulted in a $2 billion retroactive bill for U.S. companies due by the end of the month. This move led to a standstill in negotiations between the two countries, with Trump and Prime Minister Mark Carney aiming to resolve their trade disputes within 30 days following the G7 summit.
Following a phone call between Carney and Trump over the weekend, Canada officially rescinded the tax. Despite this, Canada is still actively engaged in discussions with G7 allies to establish an international tax framework. Finance Minister François-Philippe Champagne is leading this initiative, as confirmed by the Prime Minister’s Office.
In response to Canada’s decision, U.S. Commerce Secretary Howard Lutnick expressed gratitude on social media for removing the DST, which he deemed a hindrance to American innovation and a potential obstacle to trade deals. Conservative Leader Pierre Poilievre also weighed in, commending Carney for canceling the tax and urging for the immediate removal of softwood lumber tariffs by the U.S. in return.
The White House spokesperson, Kush Desai, praised Trump for leveraging the strength of the American economy to secure a victory for American industries and workers. With negotiations set to resume, both countries are hopeful for a positive outcome in their trade talks.
