Overview

• On June 30, Finance Minister François-Philippe Champagne officially withdrew the Digital Services Tax that was due to take effect that day.
• The repealed levy would have imposed a 3% charge on digital firms’ Canadian revenues retroactive to January 2022, with the first payment projected at about US$2 billion.
• The decision followed President Trump’s suspension of bilateral trade negotiations and threats of new tariffs over the planned tax.
• Prime Minister Mark Carney and President Trump have agreed to resume talks immediately, aiming to conclude a new agreement by July 21, 2025.
• Ottawa had initially sought a multilateral solution through the OECD but enacted the tax unilaterally when global negotiations stalled.