Canadian businessman Kevin O’Leary discusses the U.S. and Canada tariff struggle and way forward for the ‘huge, stunning invoice’ on ‘The Night Edit.’
Canadian Prime Minister Mark Carney will resume commerce talks with U.S. President Donald Trump after Canada mentioned late Sunday it was rescinding a digital companies tax on American tech corporations.
The Canadian authorities mentioned it was rescinding the Digital Companies Tax “in anticipation of a mutually useful complete commerce association with america.”
“In line with this motion, Prime Minister Carney and President Trump have agreed that events will resume negotiations with a view in the direction of agreeing on a deal by July 21, 2025,” Canada’s Division of Finance mentioned in a information launch.
It added {that a} June 30, 2025 assortment will probably be halted, and laws is pending to rescind the Digital Companies Tax Act.
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President Donald Trump meets with Canadian Prime Minister Mark Carney on the G7 summit in Kananaskis, Alberta, Canada, on June 16, 2025. (Reuters/Kevin Lamarque / Reuters)
Canada’s digital companies tax took impact in June 2024 and requires massive companies, whether or not they’re headquartered in Canada or elsewhere, to pay a 3% tax on income earned from participating with on-line customers in Canada in the event that they meet sure situations.
Trump terminated commerce discussions with Canada on Friday, citing the digital companies tax on American tech corporations like Amazon, Meta, Google, and Apple, amongst others, as the rationale.
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“They’re clearly copying the European Union, which has accomplished the identical factor, and is presently beneath dialogue with us, additionally. Based mostly on this egregious Tax, we’re hereby terminating ALL discussions on Commerce with Canada, efficient instantly,” Trump wrote in a submit on Reality Social.
Mark Carney, Canada’s prime minister, speaks throughout a marketing campaign rally in Calgary, Alberta, Canada, on Tuesday, April 8, 2025. (Gavin John/Bloomberg / Getty Photos)
Trump mentioned the administration will inform Canada inside the “subsequent seven day interval” of what tariff it can pay to do enterprise with the U.S.
The president added in his submit that Canada is “a really troublesome Nation to TRADE with” and claimed that Canada has levied tariffs of as much as 400% on U.S. dairy merchandise.
The breakdown in commerce talks adopted the 2 leaders’ G7 assembly early this month, and Carney saying they’d agreed to wrap up a brand new financial settlement inside 30 days.
ABU DHABI, UNITED ARAB EMIRATES – MAY 16: U.S. President Donald J. Trump speaks throughout a US-UAE Funding Discussion board alongside U.S. Secretary of the Treasury, Scott Bessent (R) at Qasr al-Watan, presidential palace of the United Arab Emirates, on Could 16, (Picture by Win McNamee/Getty Photos / Getty Photos)
The U.S. is Canada’s largest buying and selling associate, whereas Canada is the biggest importer of American exports and one of many high three sources of U.S. imports.
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Canada had escaped Trump’s broad tariffs imposed in April however faces 50% duties on metal and aluminum.
FOX Enterprise’ Eric Revell and Reuters contributed to this report.
