US Initiates Trade Dispute Over Canada's New Digital Services Tax

The Biden administration challenges the tax, citing discrimination against American tech firms.

The US has requested trade dispute consultations with Canada regarding its recently enacted digital services tax.
The tax, introduced in June, is seen by the US as inconsistent with North American trade deal obligations.
If consultations fail, the US may seek a dispute settlement panel under the USMCA, potentially leading to tariffs on Canadian imports.
A Canadian official stated that the US's move was expected and part of ongoing discussions between the two nations.
Previous US actions against similar taxes in other countries have been paused due to global tax negotiations.