Latest news with #AmericanTechGiants
Yahoo
02-07-2025
- Business
- Yahoo
Canada Scraps Digital Services Tax After Trump Trade Talks Threat
Canada has rescinded a digital service tax on American tech giants to allow trade talks with the U.S. to resume to end an ongoing tariffs war. The move follows U.S. President Donald Trump on Friday on Truth Social calling a halt to negotiations with Canada over a DST branded a 'direct and blatant attack on our Country.' More from The Hollywood Reporter Olivia Rodrigo Brings Out The Cure's Robert Smith as She Wraps Up Politically Charged Glastonbury Charli xcx Hits Back at "Boomer" Criticism of Autotune Use During Glastonbury Set: "Yawn" Why Everyone Is Talking About Malta Right Now Climbing down, the Canadian government in a statement Sunday said it will withdraw the tax 'in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.' The U.S.-Canada trade talks are now expected to get back on track ahead of a July 21 deadline for a new deal. Canada's digital services levy on American digital platforms was introduced last year and Ottawa was set to start collecting the tax from foreign tech platforms from June 30. The bill for American tech players, which comes from a 3 percent levy imposed on their revenues from doing business in Canada and due on Monday, could have reached $2 billion annually. Canada said it will introduce legislation to rescind the DST. The move has implications internationally where governments have similarly considered imposing regulation and taxes on dominant foreign streamers in their markets to fund domestic film and TV industry ambitions. Canada in particular has used legislation to compel foreign digital platforms to hand over cash to help local producers compete against Hollywood by directly subsidizing local content. European governments have also proposed their own new taxes and regulations aimed squarely at the global streamers. June 30, 5 a.m. PT: Updated with additional detail. Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
Gizmodo
30-06-2025
- Business
- Gizmodo
Trump Bullies Canada Into Killing Its Big Tech Tax
Donald Trump has reason to celebrate. In a stunningly rapid reversal, Ottawa has caved to his demands and rescinded a controversial tax aimed at American tech giants, ending a standoff that began on Friday. 'Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,' Finance Minister François-Philippe Champagne announced in a statement Sunday evening. Following the announcement, Prime Minister Mark Carney and President Trump 'have agreed that the parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025.' This marks a stunning and swift victory for Trump, who shocked markets on Friday with a post on his Truth Social platform. He declared that due to Canada's decision to impose the Digital Services Tax on American tech companies, 'we are terminating ALL discussions on trade with Canada, effective immediately.' For Trump, this capitulation provides a much needed political win at a critical moment. His presidency has been defined by an aggressive 'America First' trade policy, launching high-stakes trade wars with tariffs on goods from China and Europe. This confrontational style is now coming to a head, as a July 9 deadline approaches for nations around the world to finalize new trade deals with the U.S. or face a new wave of steep, 'reciprocal' tariffs. Forcing a key ally like Canada to fold so quickly and publicly sends a powerful message to other negotiating partners. The victory also helps Trump project strength on the home front after a bruising political showdown. His signature legislative priority, the 'One Big Beautiful Bill,' has faced intense criticism, even from former allies like Elon Musk, over its massive spending and deep cuts to popular programs. Having been forced to navigate a fractured Republican party to get the bill through Congress, securing a clear-cut win against a foreign government over an unpopular tech tax provides the administration with valuable positive momentum. The confrontation centered on Canada's Digital Services Tax. The measure imposes a 3% tax on the Canadian revenue of large digital companies, like Amazon, Google, and Meta. The tax has been in effect since last year, but the first payments are due this Monday, June 30. 'The June 30, 2025 collection will be halted,' Champagne said in his statement. The tax has been a major point of contention. While Canada is not the only country to implement such a measure, joining nations like France, Italy, and the United Kingdom, the U.S. government views these taxes as unfairly targeting American firms. In recent weeks, a coalition of Canadian and American business groups, along with U.S. tech industry organizations and American elected officials, had signed letters calling on the Canadian government to repeal or suspend the tax. Prime Minister Mark Carney sought to frame the decision as a step toward a broader, more beneficial agreement. 'In our negotiations on a new economic and security relationship between Canada and the United States, Canada's new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,' Carney said.
