Overview

• Canada officially withdrew its 3% digital services tax late on June 29, hours before the first payments were due, after President Trump suspended talks over the levy
• Prime Minister Mark Carney and President Trump agreed to resume negotiations aiming for a comprehensive economic and security agreement by July 21 under G7-set deadlines
• The U.S. has kept reciprocal tariffs on pause through July 9 and may send letters specifying new rates if no deal is reached
• Canada’s defunct levy would have applied a 3% charge on digital services revenue from Canadian users above US$20 million, retroactive to 2022, targeting Amazon, Meta, Google and Apple
• The G7 endorsed a “side-by-side” corporate tax framework that recognizes existing U.S. minimum tax laws as part of broader global tax coordination efforts