Mon Jun 30 03:35:09 UTC 2025: ## News Article: Trade Talks Resume Between US and Canada After Digital Tax Recission

**Toronto, June 30, 2025 (The Hindu)** – Trade negotiations between the United States and Canada have resumed after Canada agreed to rescind its planned Digital Services Tax (DST) on U.S. technology firms. The announcement comes after U.S. President Donald Trump suspended trade talks on Friday, calling the tax “a direct and blatant attack” on the U.S.

Canadian Prime Minister Mark Carney stated that the decision to rescind the tax was made “in anticipation” of a trade deal. The DST, set to take effect Monday, would have imposed a 3% levy on revenue earned from Canadian users by companies like Amazon, Google, Meta, Uber, and Airbnb, potentially costing U.S. firms $2 billion.

According to Carney’s office, he and Trump have agreed to resume negotiations, aiming to meet the July 21st deadline established at the recent G7 Leaders’ Summit.

Canadian Finance Minister François-Philippe Champagne emphasized that “rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress.”

President Trump’s Friday announcement was the latest development in his ongoing trade war, characterized by fluctuating progress and often contentious interactions with Canada. He has previously imposed tariffs on Canadian steel, aluminum, and automobiles, in addition to a broad import tax. Canada and Mexico also face separate tariffs imposed under the pretense of combating fentanyl smuggling. While the 2020 U.S.-Mexico-Canada Agreement offers some protections, significant tariffs remain.

The resumption of trade talks offers a glimmer of hope for a more stable economic relationship between the two nations, after a period marked by tariffs and potential taxes aimed at tech companies.

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