In retribution for levies that affect US tech companies, President Donald Trump announced Friday that he is ending trade talks with Canada. He also stated that Ottawa will be informed of their new tariff rate in a week.
The digital services tax that was implemented in Canada last year and is expected to generate Can$5.9 billion (US$4.2 billion) over five years was the subject of Trump’s reference.
The Computer & Communications Industry Association has stated that although the measure is not new, US service providers will be “on the hook for a multi-billion dollar payment in Canada” come June 30.
Large or international corporations that offer digital services to Canadians, like Alphabet, Amazon, and Meta, are subject to the 3% tax. Washington has previously asked for dispute resolution discussions over the issue.
