Canada rescinds digital services tax after Trump suspends trade talks

Canada has rescinded its digital services tax in a bid to advance trade negotiations with the United States, days after US President Donald Trump called off talks in retaliation for the levy.

Canadian Prime Minister Mark Carney, in a statement on Sunday, said he and Trump have now agreed to resume trade 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.

The Canadian levy on technology firms had been set to go into effect on Monday. (Aljazeera)