The Canadian businessman Kevin O’Leary discusses the rate fight and the future of the ‘Big, Beautiful Bill’ on ‘the evening adaptation’.
OTTAWA – Canada will continue with a Digital Services Tax (DST) about technology companies, which President Donald Trump “mentioned a direct and blatant attack on our country” in a social social function on Friday in which he said his administration “all discussions about the trade with Canada immediately ended”.
On Friday, the office of Canadian Prime Minister Mark Carney responded to one line to the announcement of the president.
“The Canadian government will continue to undertake these complex negotiations with the United States in the best interest of Canadian employees and companies,” said it.
Trump says the US will terminate all commercial interviews with Canada on digital service tax
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 first payment for the 3% DST is still due on Monday, which has confirmed the financial department of Canada to Bloomberg News, and covers the income of digital services collected from Canadian users retroactively until 2022, for about a bill of $ 2 billion for companies such as Amazon, Meta and Google.
Last week, the Canadian Finance Minister François-Philippe Champagne Reporters told that the tax could be negotiated as part of broader trade discussions in the US and Canada.
In a statement that was released on Friday, the Business Council of Canada said that it has long warned that “the implementation of a unilateral tax on digital services could run the risk of undermining the economic relationship of Canada with his most important trading partner, the United States. That unfortunate development has now happened.”
“In an attempt to regain trade negotiations, Canada should make an immediate proposal to eliminate the DST in exchange for an elimination of rates from the United States,” said Goldy Hyder, president and chief executive officer of the council.
Vehicles put the Blue Water Bridge over the St. Claire River to Port Huron, Michigan van Sarnia, Canada, on March 18, 2020, in Port Huron, Michigan. (Photo by Jeff Kowalskyafp via Getty Images / Getty images)
Canada ready for Trump rate fight as leaders of the country threaten retribution: ‘Dollar-for-Dollar’
Doug Ford, Prime Minister of Ontario – the most densely populated province of Canada – has called for a “break” in the implementation of the tax, which came into effect last June.
“For our American partners this is nothing but an unfair burden that endangers millions of Canadian jobs,” he said in a speech Last October.
“It is an extraordinary action by a neighbor and trading partner, and it simply shows how unpredictable and chaotic the United States are under President Trump,” said McKenna, the current chairman of Brookfield Corp. and deputy chairman of TD Securities.
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Bloomberg reported on Friday that the DST will not influence the recent G7 agreement that led to the removal of the proposal from section 899 “Revenge tax” from Trump’s tax assessment, according to the Canadian Finance Department.
