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U.S. Senators Press Carney for Fall Repeal of Canada’s Digital Services Tax

Mark Carney has pledged to introduce legislation in the fall session to end the levy ahead of a threatened August 1 U.S. tariff.

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Overview

  • A bipartisan delegation of Senators Ron Wyden, Maggie Hassan, Catherine Cortez Masto and Lisa Murkowski met with Prime Minister Mark Carney in Ottawa to demand a swift parliamentary repeal of the 3 percent digital services tax.
  • Carney said he will table formal repeal legislation when the House of Commons returns on September 15 after suspending the tax at the end of June.
  • The Canada Revenue Agency is not collecting the levy but will also withhold refunds until Parliament officially abolishes the tax.
  • President Trump set an August 1 deadline in a July 10 letter to impose 35 percent tariffs on Canadian imports to compel removal of the digital services tax.
  • The sessions follow broader U.S.–Canada discussions covering softwood lumber quotas and efforts to curb fentanyl precursor flows.