Overview

• Ottawa officially repealed its 3 percent digital services tax targeting firms with over 1.1 billion CAD in global revenue and 20 million CAD in Canadian sales.
• President Trump halted bilateral trade discussions on June 27, calling the TSN a “direct and obvious blow” and warning of tariffs within seven days.
• Finance Minister François-Philippe Champagne said the repeal will clear the way to resume negotiations and secure an agreement with Washington by July 21.
• The TSN was introduced in 2024 as a temporary measure pending an OECD-led global digital tax framework and follows similar rollbacks in India.
• Experts including Joseph Stiglitz warn that unilateral digital levies lack resilience without an international pact and could weaken governments’ tax sovereignty.