By: TPA Staff Reporter | editor@thepointafricanews.com

Canada has announced it will rescind its proposed 3 percent digital services tax (DST) targeting revenue from digital platforms like Google, Meta, Amazon, Uber, and Airbnb, effective June 30, 2025. The tax, initially introduced in 2020 and enforced from June 2024—with retroactive effects to January 1, 2022—was projected to raise approximately C$7.2 billion over five years.

Canadian Prime Minister Mark Carney and U.S. President Donald Trump agreed to resume stalled trade negotiations, targeting a comprehensive economic and security deal by July 21, 2025, according to statements from Canada’s Finance Ministry. Trump had threatened to suspend trade talks and impose tariffs, calling the DST a “blatant attack” on American innovation.

Finance Minister François-Philippe Champagne emphasized that removing the digital tax supports the negotiations aimed at boosting economic cooperation and job growth in both nations.

The U.S. has also long opposed such unilateral levies, filing a consultation request under the Canada-U.S.-Mexico Agreement in 2024 and objecting that the tax discriminated against U.S. firms. Canada’s rescission aligns it with international partners still pushing an OECD-wide approach to taxing digital giants .