Visiting Trump, Canada Cancels US Technology Company Tax
JAKARTA - The Canadian government softened to US President Donald Trump angered by taxes on American technology companies.
Most recently, Canada will lift digital service taxes in a bid to restart trade negotiations with the United States.
US President Donald Trump on Friday last week canceled trade negotiations between the two countries, blaming taxes he called a direct and blatant "attack" against the US.
In a statement on the evening of Sunday, June 29, the Canadian government said it would withdraw from the tax to help bring the two countries back to the negotiating table.
"To support these negotiations, the Minister of Finance and National Revenue, DearestestPhilippemen, announced today that Canada will revoke Digital Service Tax (DST) to anticipate mutually beneficial comprehensive trade arrangements with the United States," the statement said. , June 30.
"In accordance with this action, Prime Minister Mark Carney and President Trump have agreed that the parties will continue negotiations with the aim of approving the deal on July 21, 2025," the statement continued.
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US President Donald Trump suddenly cut off trade negotiations with Canada because of taxes targeting US technology companies.
Trump called the tax imposed by Canada a "discrete attack".
Therefore, the US said Trump would set a new tariff for Canadian goods.
The move plunged US-Canada relations back into chaos after a relatively calm period that included a friendly G7 meeting in mid-June where Trump and Canadian Prime Minister Mark Carney agreed to finalize a new economic agreement within 30 days.
Trump, in a post on his social media platform Truth, called Canadian taxes a "direct and blatant attack on our country".
He said Canada was a "very difficult country to TRADE with us."
"Based on this outrageous tax, we hereby stop all discussions about Trade with Canada, it will take effect immediately," Trump said.
"We will inform Canada of the rates they will pay to do business with the United States in the next seven days," Trump continued.
Speaking to reporters at the White House, Trump said negotiations with Canada would not continue.
"Until they correct their actions," he said.
Canada is the second largest US trading partner after Mexico, and the largest US export buyer. Last year, Canada bought US goods worth $349.4 billion and exported $412.7 billion to the US, according to data from the US Census Bureau.