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New Indian Express
an hour ago
- New Indian Express
Canada rescinds tax on US tech firms in hopes of Trump trade deal
OTTAWA: Canada will rescind taxes impacting US tech firms that had prompted President Donald Trump to retaliate by calling off trade talks, Ottawa said Sunday, adding that negotiations with Washington would resume. The digital services tax, enacted last year, would have seen US service providers such as Alphabet and Amazon on the hook for a multi-billion-dollar payment in Canada by Monday, analysts have said. Washington has previously requested dispute settlement talks over the tax -- but on Friday Trump, who has weaponized US financial power in the form of tariffs, said he was ending trade talks with Ottawa in retaliation for the levy. He also warned that Canada would learn its new tariff rate within the week. But on Sunday, Ottawa binned the tax, which had been forecast to bring in Can$5.9 billion (US$4.2 billion) over five years. Finance Minister Francois-Philippe Champagne "announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," a government statement said. It added that Trump and Canadian Prime Minister Mark Carney "have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025." There was no immediate comment from the White House or Trump.
NDTV
an hour ago
- NDTV
US Canada Resume Trade Talks Days After Trump Ended It Over Tax On Tech Firms
Toronto: Canadian Prime Minister Mark Carney said late Sunday trade talks with US have resumed after Canada rescinded its plan to tax US technology firms. US President Donald Trump said Friday that was suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called "a direct and blatant attack on our country." The Canadian government says "in anticipation" of a trade deal "Canada would rescind" the Digital Services Tax. The tax was set to go into effect Monday. Carney's office said Carney and Trump have agreed to resume negotiations. "Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis," Carney said in a statement. Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks. Trump, in a post on his social media network last Friday, said Canada had informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. Trump's announcement Friday was the latest swerve in the trade war he's launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president poking at the nation's northern neighbor and repeatedly suggesting it would be absorbed as a US state. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
News18
2 hours ago
- News18
Trump Not Planning To Extend Tariff Pause Beyond July 9 As India Talks Hit Critical Point
Last Updated: Donald Trump said the 90-day pause on tariffs will end July 9, with no plans for an extension. Countries without trade deals with the US will soon receive letters, he said. Donald Trump has said he is not planning to extend a 90-day pause on tariffs on most nations beyond July 9. Speaking to Fox News, the US President also said his administration would notify countries of the trade penalties coming into effect, unless there are deals with the United States. This comes as the preliminary trade deal between India and the US is in its final stages, Hindustan Times reported, adding that the ball was now in the court of the political leadership to break a stalemate. Both sides are in a sprint to announce a breakthrough, which will be a preliminary deal covering some portion of the trade between the two nations, with a larger bilateral trade deal expected to be signed by October, the report claimed. Letters will start going out 'pretty soon" before the approaching deadline, Donald Trump said. 'We'll look at how a country treats us, are they good, are they not so good, some countries we don't care, we'll just send a high number out," Trump said during an interview on Sunday. Those letters, he said, would say, 'Congratulations, we're allowing you to shop in the United States of America, you're going to pay a 25 per cent tariff, or a 35 per cent or a 50 per cent or 10 per cent." On Friday, the US President had played down the deadline at a White House news conference, and had noted how difficult it would be to work out separate deals with each nation. The administration had set a goal of reaching 90 trade deals in 90 days. Trump also abruptly cut off trade talks with Canada on Friday over its tax targeting US technology firms, saying that it was a 'blatant attack" and that he would set a new tariff rate on Canadian goods within the next week. Trump's action came ahead of Canada's plans to begin collecting on Monday a previously enacted digital services tax on US technology firms, including Amazon, Meta, Alphabet's Google and Apple, among others. The tax is 3 per cent of the digital services revenue a firm takes in from Canadian users above $20 million in a calendar year, and payments will be retroactive to 2022. On Thursday, the United States sent a new proposal to the European Union, while India sent a delegation to Washington for more talks. The Trump administration officials also held trade talks with Japan and two other countries in advanced negotiations with the US. The Japanese government said in a statement that the two sides will continue to work to 'reach an agreement that benefits both Japan and the United States." First Published: June 30, 2025, 08:35 IST
