Canada-America News / Canada scared by Trump's threat, cancels decision to impose digital tax on US companies

Canada-America News: US President Donald Trump has once again forced Canada to bow down using his diplomatic strategy and economic pressure. The matter is about the Digital Service Tax (DST), which Canada was going to implement from Monday. This tax would have a direct impact on American tech companies like Google, Amazon, Facebook. But Trump, calling this initiative of Canada a "direct attack on America", announced the closure of the ongoing trade talks with Canada on Friday.

Trade talks resumed after Canada's leniency

Canadian Prime Minister Mark Carney immediately responded and canceled the plan to impose DST. After this, the US agreed to resume trade talks with Canada. Carney said that this decision is an important step towards bringing the US-Canada trade agreement back on track.

Carney said in an official statement, "This announcement will help restore trade talks under the deadline of July 21, 2025 set at the G7 conference." It is noteworthy that Carney met Trump at the White House in May, after which Trump arrived in Canada for the G7 summit in June.

Talks are going on to ease tariffs

Now there are discussions between the two countries about easing the heavy US tariffs imposed on steel, aluminum, and the automotive industry. The Trump administration has already imposed tariffs ranging from 25 to 50 percent on these products. In addition, the US has also imposed a basic duty of 10 percent on goods coming from other countries.

However, the US has currently postponed the new tariff hike for 90 days, which is ending on July 9. After this, the US can again impose tariff hikes, which are likely to affect global trade.