The Canadian businessman Kevin O’Leary discusses the rate fight and the future of the ‘Big, Beautiful Bill’ on ‘the evening adaptation’.
Canadian Prime Minister Mark Carney will resume trade interviews with US President Donald Trump after Canada said it said at the end of Sunday that it had been a digital tax on American technology companies.
The Canadian government said that it is withdrawing the tax on digital services “pending a mutually affordable extensive trade arrangement with the United States.”
“In accordance with this promotion, Prime Minister Carney and President Trump agree that the parties will resume negotiations with a view to agreeing a deal before July 21, 2025,” said Canada’s Department of Finance in a press release.
It added that a collection of 30 June 2025 will be stopped and the legislation is being processed to withdraw the Digital Services Tax Act.
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President Donald Trump meets Canadian Prime Minister Mark Carney at the G7 top in Kananasis, Alberta, Canada, on June 16, 2025. (Reuters / Kevin Lamarque / Reuters)
The tax on Digital Services of Canada came into force in June 2024 and requires large companies, whether they are headquarters in Canada or elsewhere, pay a 3% tax on income that is earned with online users in Canada if they meet certain conditions.
Trump terminated trade discussions with Canada on Friday, referring to the Digital Services tax on American technology companies such as Amazon, Meta, Google and Apple, among other things as the reason.
“They clearly copy the European Union, which has done the same thing, and is currently also being discussed with us. Based on this gross load, we hereby terminate all discussions about trade with Canada,” Trump wrote in a position about Truth Social.
Mark Carney, the Prime Minister of Canada, speaks during a campagnerally in Calgary, Alberta, Canada, on Tuesday 8 April 2025. (Gavin John / Bloomberg / Getty images)
Trump said that the Canada administration will inform within the “next seven days” of what rate it will pay to do business with the US
In his position, the president added that Canada “is a very difficult country to deal with” and claimed that Canada has yielded the rates of up to 400% on American dairy products.
The breakdown in trade discussions followed the G7 meeting of the two leaders at the beginning of this month, and Carney said they had agreed to complete a new economic agreement within 30 days.
Abu Dhabi, United Arab Emiraten-16 May: US President Donald J. Trump speaks during a US-Uae Investment Forum in addition to the American Minister of Treasury, Scott Bessent (R) in QASR Alan, Presidential Palace of the United Arab Emirates, on 16 May, on May 16, (Photo by Win McNamee / Getty Images / Getty Images)
The US is the largest trading partner in Canada, while Canada is the largest importer of American exports and one of the top three sources of American import.
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Canada had escaped the wide rates of Trump that were imposed in April, but is confronted with 50% tasks on steel and aluminum.
