TSLA427.3306.73001%
GM77.040-0.04%
F13.645-0.255%
RIVN17.4750.125%
CYD46.570-0.84%
HMC27.3100.2%
TM169.9901.57%
CVNA67.6001.78%
PAG179.3500.4%
LAD290.5400.05%
AN186.3300.54%
GPI289.270-1.9%
ABG201.7400.66%
SAH84.260-0.53%
TSLA427.3306.73001%
GM77.040-0.04%
F13.645-0.255%
RIVN17.4750.125%
CYD46.570-0.84%
HMC27.3100.2%
TM169.9901.57%
CVNA67.6001.78%
PAG179.3500.4%
LAD290.5400.05%
AN186.3300.54%
GPI289.270-1.9%
ABG201.7400.66%
SAH84.260-0.53%
TSLA427.3306.73001%
GM77.040-0.04%
F13.645-0.255%
RIVN17.4750.125%
CYD46.570-0.84%
HMC27.3100.2%
TM169.9901.57%
CVNA67.6001.78%
PAG179.3500.4%
LAD290.5400.05%
AN186.3300.54%
GPI289.270-1.9%
ABG201.7400.66%
SAH84.260-0.53%

Canada drops digital services tax to salvage derailed trade talks with US

Bipartisan U.S. policymakers estimate that Canada's digital services tax could cost U.S. firms over $2 billion.
Canada drop digital tax

Canada halted the enforcement of its Digital Services Tax (DST) just a few hours before it was set to take effect on Monday in an effort to salvage trade discussions with the United States.

The move came after President Donald Trump abruptly terminated trade discussions on Friday, calling the tax a “blatant attack” on American technology companies. Trump also warned that he would increase the tariff rates against Canadian goods within the week if the tax were to proceed.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

In response, Canada rescinded the DTS late Sunday night, hoping to keep negotiations on track. U.S. Commerce Secretary Howard Lutnick thanked Canada on X, stating that the tax would have been a “deal breaker” for any trade agreement with the United States.

Canadian Finance Minister François-Philippe Champagne will formally propose new legislation to repeal the Digital Services Tax Act (DSTA). President Donald Trump and Canadian Prime Minister Mark Carney are expected to resume negotiations and aim to reach an agreement by July 21.

Canada’s DTSA was initially proposed in 2019 under former Prime Minister Justin Trudeau and approved in June 2024. The policy would have imposed a 3% tax on the digital revenues generated from Canadian users by large technology firms, with global annual revenues surpassing $820 million and Canadian revenues over $14.7 million. The tax was retroactive, mandating payments on revenues dating back to 2022, and was set to be collected on Monday, June 30, 2025.

The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians,” the Department of Finance Canada said in a statement. “Canada’s preference has always been a multilateral agreement related to digital services taxation.”

The tax would have affected major U.S. tech companies, including Amazon, Apple, Google and Meta. Estimates suggested that Canada’s digital tax could cost U.S. firms over $2 billion.

Read More
More from Articles
Today marks deadline for USMCA review, with no extension in sight

U.S., Canada and Mexico hold virtual meeting today on USMCA

- July 1, 2026
On the Dash: USMCA hits its first mandatory review today, with extension, withdrawal or annual reviews all possible. Trump has signaled the U.S. won't renew the deal as written, delaying...
Kia posts record June and first-half U.S. sales on hybrid demand

Kia posts record June and first-half U.S. sales on hybrid demand

- July 1, 2026
On the Dash: Kia sold 70,507 units in June, up 10% and a brand record. Hybrid sales rose 187% in June, driven by Sportage and Sorento. First-half sales hit 430,727...
Used car prices continued to rise in June, Carfax reports

Used car prices continued to rise in June, Carfax reports

- July 1, 2026
On the Dash: Used car prices rose just 1.3% in June, down from more than 3% in May according to Carfax. Hybrids and EVs lead all segments, up 11.9% since...
Tesla updates FSD in older cars, full self-driving still absent

Tesla updates FSD in older cars, full self-driving still absent

- July 1, 2026
On the Dash: Tesla has started rolling out FSD v14 Lite to Hardware 3 (HW3) vehicles, the first major update for that hardware since early 2025. The build distills driving...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.