Canada drops tax on tech giants to restart stalled US trade talks
Ottawa | Canada scrapped its digital services tax targeting US technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States.
Canadian Prime Minister Mark Carney and US President Donald Trump will resume trade negotiations in order to agree on a deal by July 21, Canada's finance ministry said in a statement.
Reuters

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The Advertiser
2 hours ago
- The Advertiser
US Senate extends vote on Trump's 'big beautiful bill'
The US Senate has extended its debate on President Donald Trump's controversial budget, with the expectation of voting on the plan, which would add more than $5 trillion to the public debt. Republicans told the media that the "vote-a-rama" would begin at 9am local time on Monday (11pm AEST), the process in which lawmakers present amendments to the initiative, which contains key elements of Trump's agenda, such as tax and public spending cuts, and increased funding for defence and immigration control. It is still uncertain whether all 53 senators from Trump's party will support the bill, as it would add $US3.3 trillion ($A5.1 trillion) to the public debt within 10 years, the Congressional Budget Office (CBO) now estimates, a higher estimate than the $US2.4 ($A3.7) trillion in the version approved by the House in May. Other lawmakers question the cuts to social programs such as Medicaid and food stamps because the CBO predicts that 12 million people will lose their health insurance by 2034 under the initiative, which would cut $US1.1 trillion ($A1.7 trillion) in public health policies. Among the critics is Republican Senator Thom Tillis of North Carolina, who resigned from his re-election bid on Sunday after publicly opposing the bill and drawing criticism from Trump. "Facts matter, people matter. The Senate's approach to Medicaid breaks promises and will push people who truly need it off Medicaid," the lawmaker said. Elon Musk, also took a swipe at the bill, which would end tax breaks for the electric vehicles that his automaker Tesla manufactures, posting on X it was "utterly insane and destructive" and "political suicide for the Republican Party". Meanwhile, Democrats displayed unified opposition by first forcing 16 hours of reading aloud of the 940-page bill and then exhausting the 10 hours of debate allotted to each party to delay the process and highlight the tax cuts for the wealthy and the budget. "Democrats are exposing on the floor through parliamentary inquiries the hypocrisy of what Republicans are trying to do here in the Senate. We are exposing how Republicans are trying to hide the true cost of their gifts to billionaires," Democratic leader Chuck Schumer said. Trump intensified his lobbying in the last week to get the Senate to approve his controversial "Big, Beautiful Bill" for signing by Friday, Independence Day. The controversy grew this week after the release of the 940-page draft currently being discussed by the Senate. It includes more cuts than those approved by the House of Representatives, particularly to social programs and tax incentives for wind and solar energy, and electric vehicles. The US Senate has extended its debate on President Donald Trump's controversial budget, with the expectation of voting on the plan, which would add more than $5 trillion to the public debt. Republicans told the media that the "vote-a-rama" would begin at 9am local time on Monday (11pm AEST), the process in which lawmakers present amendments to the initiative, which contains key elements of Trump's agenda, such as tax and public spending cuts, and increased funding for defence and immigration control. It is still uncertain whether all 53 senators from Trump's party will support the bill, as it would add $US3.3 trillion ($A5.1 trillion) to the public debt within 10 years, the Congressional Budget Office (CBO) now estimates, a higher estimate than the $US2.4 ($A3.7) trillion in the version approved by the House in May. Other lawmakers question the cuts to social programs such as Medicaid and food stamps because the CBO predicts that 12 million people will lose their health insurance by 2034 under the initiative, which would cut $US1.1 trillion ($A1.7 trillion) in public health policies. Among the critics is Republican Senator Thom Tillis of North Carolina, who resigned from his re-election bid on Sunday after publicly opposing the bill and drawing criticism from Trump. "Facts matter, people matter. The Senate's approach to Medicaid breaks promises and will push people who truly need it off Medicaid," the lawmaker said. Elon Musk, also took a swipe at the bill, which would end tax breaks for the electric vehicles that his automaker Tesla manufactures, posting on X it was "utterly insane and destructive" and "political suicide for the Republican Party". Meanwhile, Democrats displayed unified opposition by first forcing 16 hours of reading aloud of the 940-page bill and then exhausting the 10 hours of debate allotted to each party to delay the process and highlight the tax cuts for the wealthy and the budget. "Democrats are exposing on the floor through parliamentary inquiries the hypocrisy of what Republicans are trying to do here in the Senate. We are exposing how Republicans are trying to hide the true cost of their gifts to billionaires," Democratic leader Chuck Schumer said. Trump intensified his lobbying in the last week to get the Senate to approve his controversial "Big, Beautiful Bill" for signing by Friday, Independence Day. The controversy grew this week after the release of the 940-page draft currently being discussed by the Senate. It includes more cuts than those approved by the House of Representatives, particularly to social programs and tax incentives for wind and solar energy, and electric vehicles. The US Senate has extended its debate on President Donald Trump's controversial budget, with the expectation of voting on the plan, which would add more than $5 trillion to the public debt. Republicans told the media that the "vote-a-rama" would begin at 9am local time on Monday (11pm AEST), the process in which lawmakers present amendments to the initiative, which contains key elements of Trump's agenda, such as tax and public spending cuts, and increased funding for defence and immigration control. It is still uncertain whether all 53 senators from Trump's party will support the bill, as it would add $US3.3 trillion ($A5.1 trillion) to the public debt within 10 years, the Congressional Budget Office (CBO) now estimates, a higher estimate than the $US2.4 ($A3.7) trillion in the version approved by the House in May. Other lawmakers question the cuts to social programs such as Medicaid and food stamps because the CBO predicts that 12 million people will lose their health insurance by 2034 under the initiative, which would cut $US1.1 trillion ($A1.7 trillion) in public health policies. Among the critics is Republican Senator Thom Tillis of North Carolina, who resigned from his re-election bid on Sunday after publicly opposing the bill and drawing criticism from Trump. "Facts matter, people matter. The Senate's approach to Medicaid breaks promises and will push people who truly need it off Medicaid," the lawmaker said. Elon Musk, also took a swipe at the bill, which would end tax breaks for the electric vehicles that his automaker Tesla manufactures, posting on X it was "utterly insane and destructive" and "political suicide for the Republican Party". Meanwhile, Democrats displayed unified opposition by first forcing 16 hours of reading aloud of the 940-page bill and then exhausting the 10 hours of debate allotted to each party to delay the process and highlight the tax cuts for the wealthy and the budget. "Democrats are exposing on the floor through parliamentary inquiries the hypocrisy of what Republicans are trying to do here in the Senate. We are exposing how Republicans are trying to hide the true cost of their gifts to billionaires," Democratic leader Chuck Schumer said. Trump intensified his lobbying in the last week to get the Senate to approve his controversial "Big, Beautiful Bill" for signing by Friday, Independence Day. The controversy grew this week after the release of the 940-page draft currently being discussed by the Senate. It includes more cuts than those approved by the House of Representatives, particularly to social programs and tax incentives for wind and solar energy, and electric vehicles. The US Senate has extended its debate on President Donald Trump's controversial budget, with the expectation of voting on the plan, which would add more than $5 trillion to the public debt. Republicans told the media that the "vote-a-rama" would begin at 9am local time on Monday (11pm AEST), the process in which lawmakers present amendments to the initiative, which contains key elements of Trump's agenda, such as tax and public spending cuts, and increased funding for defence and immigration control. It is still uncertain whether all 53 senators from Trump's party will support the bill, as it would add $US3.3 trillion ($A5.1 trillion) to the public debt within 10 years, the Congressional Budget Office (CBO) now estimates, a higher estimate than the $US2.4 ($A3.7) trillion in the version approved by the House in May. Other lawmakers question the cuts to social programs such as Medicaid and food stamps because the CBO predicts that 12 million people will lose their health insurance by 2034 under the initiative, which would cut $US1.1 trillion ($A1.7 trillion) in public health policies. Among the critics is Republican Senator Thom Tillis of North Carolina, who resigned from his re-election bid on Sunday after publicly opposing the bill and drawing criticism from Trump. "Facts matter, people matter. The Senate's approach to Medicaid breaks promises and will push people who truly need it off Medicaid," the lawmaker said. Elon Musk, also took a swipe at the bill, which would end tax breaks for the electric vehicles that his automaker Tesla manufactures, posting on X it was "utterly insane and destructive" and "political suicide for the Republican Party". Meanwhile, Democrats displayed unified opposition by first forcing 16 hours of reading aloud of the 940-page bill and then exhausting the 10 hours of debate allotted to each party to delay the process and highlight the tax cuts for the wealthy and the budget. "Democrats are exposing on the floor through parliamentary inquiries the hypocrisy of what Republicans are trying to do here in the Senate. We are exposing how Republicans are trying to hide the true cost of their gifts to billionaires," Democratic leader Chuck Schumer said. Trump intensified his lobbying in the last week to get the Senate to approve his controversial "Big, Beautiful Bill" for signing by Friday, Independence Day. The controversy grew this week after the release of the 940-page draft currently being discussed by the Senate. It includes more cuts than those approved by the House of Representatives, particularly to social programs and tax incentives for wind and solar energy, and electric vehicles.

Sydney Morning Herald
4 hours ago
- Sydney Morning Herald
US intercepts Iranian call on damage to nuclear sites, as photos show likely repairs under way
Washington: An intercepted communication between senior Iranian officials suggests the United States did not inflict as much damage as anticipated when it struck Iran's nuclear sites earlier this month, despite US President Donald Trump claiming the assault 'obliterated' the facilities. Satellite photographs taken since the strikes show repair and assessment work also appears to be under way at two of the three sites struck on June 22. The intercepted Iranian communication played down the extent of damage caused by the strikes, The Washington Post reported, citing four people familiar with classified intelligence circulating within the US government. During the conversation overheard by the US, the Iranian officials wondered why the attacks had not been as destructive and extensive as anticipated. But a source who declined to be named told Reuters that while the communication had been intercepted, there were serious questions about whether the Iranian officials were being truthful in their conversation, and described the intercepts as unreliable indicators. The report by the Post is the latest to raise questions about the extent of the damage to Iran's nuclear program. Loading A leaked preliminary assessment from the Defence Intelligence Agency cautioned the strikes may have only set back Iran by months, and the head of the United Nations nuclear watchdog, Rafael Grossi, concurred with that on Sunday, saying Iran may be able to enrich uranium again within 'a matter of months'. But CIA director John Ratcliffe told sceptical US lawmakers in a classified hearing last week that the strikes had destroyed Iran's lone metal conversion facility, a US official said, meaning it would now take years for Iran to build a nuclear bomb. Ratcliffe also told politicians that the intelligence community assessed that the vast majority of Iran's amassed enriched uranium probably remained buried under the rubble at Isfahan and Fordow, two of the three facilities the US struck.


Sky News AU
4 hours ago
- Sky News AU
Warning for Albanese government after US President Donald Trump pressures Canada into rescinding digital services tax
Labor has been delivered a stark warning amid negotiations with the United States after the Canadian government said it was rescinding its digital-services tax to salvage trade discussions with Donald Trump. Canada's planned digital tax was three per cent of the digital services revenue a firm reaps from Canadian users above CA$20m in a calendar year, and payments were to be retroactive to 2022. The tax would have targeted major tech giants including Facebook-owner Meta, Google-owner Alphabet, Apple, Amazon and others. Trump abruptly called off trade talks on Friday over the tax targeting US technology firms, saying that it was a "blatant attack" before reiterating this on Sunday and pledging a new tariff rate on Canadian goods. The US President and Canadian Prime Minister Mark Carney will now resume trade negotiations in order to agree on a deal by July 21, Canada's finance ministry said in a statement. The back-and-forth comes as a warning for the Albanese government's news media bargaining incentive which will force technology giants to pay local news outlets for their content. After Trump began revealing his array of tariffs, Prime Minister Anthony Albanese vowed to defend the legislation targeting the tech giants. 'We have been crystal clear with the United States about what is not up for negotiation,' he said in April. 'Our government stands by our media bargaining code. We strongly support local content in streaming services, so Australian stories stay on Australian screens.' Assistant Treasurer Daniel Mulino last week stressed the incentive remained a 'key priority' for Labor amid negotiations with the Trump Administration. 'This is a policy the government remains committed to,' Mr Mulino said, according to the Australian Financial Review. Concerns about Australia's media bargaining code arose recently as section 899 of Trump's 'big beautiful bill' threatened a 15 per cent tax on nations the US believes unfairly treats its companies. US Treasury Secretary Scott Bessent rolled back the legislation after reaching an 'understanding' with the G7 where American companies would be exempt for the new global minimum 15 per cent corporate tax. Treasurer Jim Chalmers welcomed the news after engaging with Mr Bessent last week to make Australia's case against section 899. 'In that meeting he said he was progressing what he could to try and resolve these issues, and we're really pleased to see some of that progress in his announcement today,' Chalmers said. 'Australia will continue to engage constructively through the OECD on international tax rules that are fair and ensure multinationals pay their fair share in Australia."