Canada: Decision to rescind digital services tax to reset U.S. trade talks

Canada’s Department of Finance confirmed late on 30 June 2025 that the Digital Services Tax (DST),  a 3 % levy scheduled for collection that same day, will be repealed.

Finance Minister François-Philippe Champagne said the withdrawal is intended to “advance a mutually beneficial, comprehensive trade arrangement with the United States,” after President Donald Trump suspended negotiations and threatened new tariffs in response to the tax. Prime Minister Mark Carney and President Trump have now instructed negotiators to aim for a deal by 21 July 2025.

Source: canada.ca