Canada Drops Digital Tax, Reopens Trade Talks with U.S.

Canada has announced it will rescind its digital-services tax, pausing collections and introducing legislation to formally repeal the measure. The move follows President Trump’s decision to halt trade talks on Friday over what he called an “egregious” tax targeting U.S. tech companies. The tax, which was set to take effect today, would have collected billions from U.S. tech firms retroactive to 2022. Canadian Prime Minister Mark Carney spoke with Trump on Sunday, agreeing to resume trade negotiations to reach a deal by July 21.