Canada Suspends Digital Services Tax to Revive U.S. Trade Talks
Canadian Prime Minister Mark Carney announced the suspension of the digital services tax as negotiations with the Trump administration to resume trade talks have commenced, aiming for a resolution by July 21, reports 24brussels.
The move comes in response to significant pressure from the U.S., where President Trump has denounced what he refers to as “non-tariff barriers” that other nations impose, particularly those affecting the technology sector.
The digital services tax implemented by the United Kingdom also drew Trump’s attention; however, British Trade Secretary has indicated that negotiations between the U.S. and the UK will not include reductions to this tax.
Reports from various news outlets suggest that Europe has shown willingness to adjust the Digital Markets Act in hopes of finalizing a trade agreement with the United States. Nonetheless, EU competition chief Teresa Ribera recently emphasized that the European Union will not compromise on its regulatory sovereignty. “We will not compromise … around sovereignty and around regulation on how to work in our own market,” Ribera stated in an interview.
As the July 9 deadline approaches and U.S. tariffs are imminent, divisions among major EU stakeholders have emerged regarding the urgency of reaching a trade agreement versus the necessity of securing more favorable conditions.
