Canadian Prime Minister Mark Carney has announced the resumption of trade negotiations with the United States, following Canada’s decision to withdraw its proposed tax on U.S. technology firms.
It had been reported that President Donald Trump had paused trade talks with Canada due to the country’s plans to implement a digital tax, deeming it as “a direct and blatant attack on our country.” In response, the Canadian government then stated that in anticipation of a viable trade deal, it would rescind this tax.
According to reliable sources in Prime Minister Carney’s office, an agreement has been reached between the two leaders to resume talks. The significance of this should not be overlooked, as it hints at a potential thawing of the tension that had been escalating between these two nations.
President Trump, via a post on Truth Social on Friday, noted that Canada had just informed the U.S. that it was retracting its plan to impose the tech tax. This tax, applicable to both Canadian and foreign businesses that interact with online users in Canada, was slated to take effect this Monday.
This development follows earlier reports that the proposed tax had become a point of contention in the ongoing trade discussions. While questions remain as to the future of these negotiations, the recent steps taken by Canada to rescind the tax suggest a willingness to reach a beneficial agreement for both nations.
