Canada Rescinds Digital Services Tax After Trump Halts Trade Talks

President Donald Trump said on June 27 that he was ending all trade negotiations with Canada over Canada’s digital services tax.

U.S. President Donald Trump greets Canadian Prime Minister Mark Carney (R) at the White House in Washington on May 6, 2025. Madalina Vasiliu/The Epoch Times

The Canadian government is rescinding its digital services tax to avoid stalling trade talks with the United States, two days after U.S. President Donald Trump announced he would end negotiations over the levy.

Ottawa says that removing the tax will put Canada back on track to reach a trade deal with the United States by July 21.