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Canada Drops Digital Services Tax at 11th Hour, Backing Down After Trump Terminated Trade Talks Over the Issue

By Todd Spangler Jun 30, 2025 | 12:09 AM

Just hours before Canada’s new Digital Services Tax was set to go into effect, the Canadian government announced that it rescinded the levy “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.” Canada scrapped the Digital Services Tax after U.S. President Donald Trump on Friday had blasted Canada’s 3% Digital Services […]