Canada and the United States have resumed trade negotiations after the Canadian Prime Minister Mark Carney He agreed to cancel the country’s digital services tax on American technology companies.
Development follows the president Donald TrumpFriday announcement that it suspends all commercial talks with Canada.An effective immediate“On the tax policy.
Why do it matter
Trump’s advertisement came on Friday after Canada confirmed that it will continue to tax digital services on technology giants, most of them from the United States, despite the previous G7 agreement, where the Trump administration agreed to drop a consecutive tax proposal from looking at Congress.
The rapid reflection in Canada indicates the high risks involved in maintaining trade relations with the United States, especially given the integrated economies of countries.
What do you know
Carne’s office confirmed on Sunday that both leaders have agreed to restart the negotiations after Canada is committed to abandoning a 3 percent tax targeting major American technology giants, including Amazonand Googleand Deadand UberAnd Airbnb. The tax was in effect on Monday, and had submitted retroactively, creating an estimated bill of about $ 2 billion for American companies.
The conflict rapidly escalated after the Ministry of Finance confirmed on Friday that companies will remain required to conduct the first digital tax payments on Monday, despite the ongoing negotiations. The targeted tax revenue resulting from Canadian users instead of corporate profits, making it especially exhausting technology companies that operate internationally.
Trump’s response was immediate and severe. He announced the suspension of all commercial discussions “immediately” and threatened to impose a new tariff on Canadian goods within seven days. President Canada, as a very difficult country in trading, “described the digital tax as” a direct attack and beating of our country. “
The conflict against relations between the United States and Canada has been revealed. Since he took office in January, Trump has repeatedly criticized Canada and suggested that the 51st American state to become. These tensions have contributed to the political environment that led Justin Trudeau’s resignation The subsequent Mark Carnary elections on a Trump anti -Trip platform.
Canada’s decision to cancel the tax “in anticipation” came to reach a broader commercial agreement, according to government officials.
What people say
Canadian Prime Minister Mark Carney said on Friday: Canada will continue to hold these complex negotiations in the interest of Canadians. They are negotiations. “
President Donald Trump previously said in the Oval Office that he expected Canada to raise the digital services tax: “We have such strengths on Canada. We prefer not to use it. It will not work well for Canada. They were a fool to do this.”
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What happens after that
With the resumption of negotiations, both countries are likely to focus on addressing the broader commercial issues outside the digital service tax.
The Trump administration has indicated expectations for additional Canadian concessions, especially with regard to agricultural tariffs that were the source of long -term friction.
Reports from the Associated Press contributed to this article.
