Headline Roundup • June 30th, 2025
Canada Halts Digital Services Tax on US, Trade Talks Resume
Summary from the AllSides News Team
The Canadian government halted its “Digital Services Tax Act” just before it was supposed to take effect Monday, prompting resumed trade talks between Canada and the US. President Donald Trump and Prime Minister Mark Carney are expected to reach a trade deal by July 21.
For Context: Trump previously halted trade negotiations with Canada – the US’ largest overall trading partner – on Friday, reportedly due to the 3% tax and the effects it would have on American technology companies. Both the Trump and Biden administrations have a history of criticizing the tax proposal.
Key Quotes: US Commerce Secretary Howard Lutnick said the tax “was intended to stifle American innovation and would have been a deal breaker for any trade deal with America.” In its press release Sunday night, the Canadian Department of Finance stated, “Canada [will] rescind the Digital Services Tax in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
How The Media Covered It: Fox Business (Lean Right bias) noted the common ground between the Trump and Biden administrations and leaned into story analysis. Reuters (Center) also focused more on analysis and highlighted both optimistic and pessimistic professional outlooks. Daily Beast (Left) called the change a “big win for Trump.” The outlet, however, criticized Trump’s history of being back and forth on deals.
Written by the AllSides staff (of humans). Learn more. Support our mission. Suggest an improvement to this summary.
Featured Coverage of this Story
The Canadian government rescinded a digital services tax that was set to take effect on Monday after President Donald Trump threatened to break off trade negotiations between the U.S. and Canada over the tax.
Canada's government adopted its 3% digital services tax a year ago and collections were due to begin on Monday. The tax applied to large tech companies that made more than $20 million a year in revenue from online marketplace services, online advertising, social media services and certain sales of user data involving engagement with users in Canada...
The United States will resume trade negotiations with Canada immediately after Ottawa scrapped its digital services tax targeting U.S. technology firms, White House economic adviser Kevin Hassett said on Monday.
"Absolutely," Hassett said on Fox News Channel when asked about the talks restarting.
White House press secretary Karoline Leavitt told reporters that Canadian Prime Minister Mark Carney called U.S. President Donald Trump on Sunday...
REUTERS
President Donald Trump played tough with Canada and emerged victorious just 48-hours later.
Canada announced on Sunday night that it was scrapping its Digital Services Tax on American tech firms, which Trump had blasted as “a direct and blatant attack” on the U.S. when he walked away from the negotiating table just two days ago. The announcement from Canada came hours before it was due to come into effect.
“To support those negotiations,” the Canadian Department of Finance said in a statement, “Canada would rescind the Digital Services Tax ...
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