Overview

• Google ceased its 2.5–3% surcharge on Canadian ads effective July 1 and will refund all fees once Parliament rescinds the law.
• Amazon continues to apply its 3% digital service fee for ads in Canada until the government formally repeals the tax.
• Ottawa announced cancellation of the levy on June 29 after President Donald Trump threatened tariffs and threatened to derail trade talks.
• The tax was retroactive to 2022 and was projected to raise US$7.2 billion over five years, including an estimated US$2 billion initial charge for US tech firms.
• Industry groups say the interim surcharges disrupted online advertising and increased costs for small businesses, underscoring the need for clear legislative action.