In a twist that could reshape global trade, Canada has scrapped its planned digital services tax to reopen trade negotiations with the United States. At a recent G7 meeting in Canada, U.S. President Donald Trump urged Canadian Prime Minister Mark Carney to remove the tax, a request that has now been heeded.
Canada’s Finance and National Revenue Minister Francois-Philippe Champagne confirmed the cancellation of the tax, which was set to impose a 3 percent levy on revenues earned by U.S. tech giants from Canadian users. This decision comes as a critical July 9 deadline looms, when the United States may reimpose tariffs of up to 50 percent on several trading partners if trade deals are not finalized.
Meanwhile, across the Atlantic, the European Union is taking an uncompromising stance on its digital legislation. European Commission spokesperson Thomas Regnier made it clear that the EU digital rules, including the Digital Markets Act and the Digital Services Act, are not up for negotiation with the United States. The EU insists on preserving its regulatory framework, regardless of third-party pressures.
Both sides are now pushing forward in their respective negotiations. The United States has reignited talks with Canada, eager to build momentum on key trade issues, while the EU remains steadfast, even as discussions about potential tariff adjustments continue. As the July 9 deadline nears, stakeholders around the world are watching closely to see how these divergent approaches will influence the evolving landscape of international trade.
This dynamic period of negotiation reminds us that in today's global market, policy decisions and trade rules can shift quickly—making it an exciting time for anyone keeping an eye on international affairs. Stay tuned for what comes next! 😎🌍
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Canada backs down, EU holds firm as U.S. tariff deadline looms
cgtn.com
