Canada-U.S. trade talks resuming after Canada kills plan to tax U.S. tech firms, Carney says. Trump had railed against it.
Toronto – Canadian Prime Minister Mark Carney said on Sunday’s business discussions on Sunday with us have resumed after Canada canceled its plan to tax American technological companies.
President Trump said on Friday that he was suspend trade discussions with Canada On his plans to continue his tax on technological companies, which he called “a direct and obvious attack against our country”.
The Canadian government has said that “in anticipation” of a commercial agreement “Canada would cancel” digital services serve the tax. The tax was to come into force on Monday.
Carney and Mr. Trump spoke on the phone on Sunday, and Carney’s office said they agreed to take over the negotiations.
“Today’s announcement will support a resumption of negotiations around July 21, 2025, the calendar arose at the G7 leaders in Kananaskis,” said Carney in a statement.
Carney visited Mr. Trump in May at the White House and was polite but firm. Trump went to Canada for the G7 summit in Alberta, where Carney said that Canada and the United States had set a 30-day deadline for commercial negotiations.
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Trump, in an article on his social media network last Friday, said that Canada had informed the United States that it was planning to impose digital services tax, which applies to Canadian and foreign companies that are involved with online users in Canada.
The digital services tax was to hit companies, including Amazon, Google, Meta, Uber and Airbnb, with a 3% levy on Canadian user income. He would have applied retroactively, leaving American companies with an American bill of $ 2 billion due to the end of the month.
Daniel Béland, professor of political science at McGill University in Montreal, described Carney’s Retreat as “Claire Victoire” for the president.
“At one point, this decision may have become necessary in the context of Canada-US trade negotiations, but Prime Minister Carney has now acted to appease President Trump and make him accept to simply take over these negotiations, which is a clear victory for the White House and the Big Tech,” said Béland.
He said it made Carney vulnerable to President Trump’s explosions.
“President Trump forced Prime Minister Carney to do exactly what Big Tech wanted. American technology leaders will be very satisfied with this result,” said Béland.
Canadian Minister of Finance François-Philippe Champagne also spoke on Sunday with the US Treasury Secretary, Scott Bessent.
“The cancellation of the digital services tax will allow negotiations for a new economic and security relationship with the United States to make vital progress,” Champagne said in a statement.
Mr. Trump’s announcement on Friday was the last distance from the trade war he launched since his entry into office for a second term in January. Progress with Canada has been roller coaster, starting with the president who pushes to the neighbor of the north of the country and repeatedly suggesting that he would be absorbed as an American state.
Canada and the United States have discussed the softening of a series of steep rates that Trump imposed on Canada’s goods.
Trump imposed prices of 50% on steel and aluminum as well as prices of 25% on cars. It also charges a 10% tax on imports from most countries, although it can increase on rates on July 9, after the expiration of the 90 -day negotiation period it set.
Canada and Mexico face separate prices up to 25% that Mr. Trump has set up under the auspices of quantity of fentanyl smuggling, although some products are always protected under the American-mexico-Canada 2020 agreement signed during Mr. Trump’s first term.
