US EditionExpert says Canada needs tech policy ‘reset’ after botched digital services tax, ex-ambassador weighs in on talks
- Canada scrapped its 3 percent digital services tax on revenue from U.S. tech firms hours before its June 30, 2025 effective date, prompting immediate resumption of trade talks with the United States.
- The tax targeted companies with over C$20 million revenue from Canadian users and faced U.S. criticism from President Donald Trump, who called it an 'egregious' and discriminatory levy.
- This tax dispute followed a broader global effort led by the OECD to reform multinational taxation and a history of U.S. trade tensions involving digital levies in Europe, particularly France and the UK.
- The federal budget officer projected the Canadian tax to raise about $7.2 billion over five years, while experts like Frank McKenna said Canada missed an opportunity to use the tax as a negotiation tool.
- Canada’s tax cancellation averted potential U.S. tariffs and reopened dialogue, while the EU maintains its digital rules firm and continues trade talks with the U.S. amid unresolved tensions over tech taxation.
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The announcement of Ottawa's abandonment of its U.S. giant digital tax has led to the resumption of negotiations between Canada and the U.S. But the critics are already on the Prime Minister's side, accused of having made too much concession.
·Montreal, Canada
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Dear Mark Carney and François-Philippe Champagne: Canada cannot afford to concede more to foreign tech giants
We are disappointed by the government’s decision yesterday to both halt collection of the Digital Services Tax and eventually repeal the Digital Services Tax Act.
·Toronto, Canada
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Total News Sources10
Leaning Left3Leaning Right2Center2Last UpdatedBias Distribution43% Left
Bias Distribution
- 43% of the sources lean Left
43% Left
L 43%
C 29%
R 29%
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