Canada cancelled its digital services tax. What was it and why did the U.S. hate it?
- Canada cancelled its digital services tax targeting U.S. tech firms just hours before it was set to take effect in late June 2025.
- The tax was introduced in 2020 to levy 3% on digital revenue over $20 million from Canadian users and faced strong U.S. opposition leading to trade tensions.
- The cancellation followed President Trump breaking off trade talks and threatening tariffs, aiming to restart negotiations and avoid harsher tariffs on Canadian imports.
- Canada is the U.S.'s second-largest trading partner, buying nearly $350 billion in goods and exporting over $412 billion last year, making the tax's removal vital for bilateral trade.
- The removal allowed trade talks to resume with hopes to conclude an agreement by July 21, signaling a possible easing of the trade dispute over digital taxation.
22 Articles
22 Articles
UK sticks with digital services tax despite Canada’s decision to row back after US pressure
The UK is currently planning to keep its digital services tax, a person familiar with the matter said, after Canadian prime minister Mark Carney scrapped their own levy to restart trade talks with US president Donald Trump's administration.

Canada ended its digital tax for Trump. Could others follow?
Canada has withdrawn a tax that could have reaped billions in revenue to bring Donald Trump back to the table. It raises the possibility that other taxes targeting big tech could be in the US president's sights next.


Withdrawal of the digital services tax: what is it, and what are the consequences?
Coverage Details
Bias Distribution
- 38% of the sources lean Left, 38% of the sources are Center
To view factuality data please Upgrade to Premium