Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax

TORONTO AP Canadian Prime Minister Mark Carney stated late Sunday bargain talks with U S have resumed after Canada rescinded its plan to tax U S equipment firms U S President Donald Trump revealed Friday that he was suspending deal talks with Canada over its plans to continue with its tax on hardware firms which he called a direct and blatant attack on our country The Canadian establishment disclosed in anticipation of a business deal Canada would rescind the Digital Serves Tax The tax was set to go into effect Monday Carney s office revealed Carney and Trump have agreed to resume negotiations At present s announcement will aid a resumption of negotiations toward the July timeline set out at this month s G Leaders Summit in Kananaskis Carney commented in a comment Carney visited Trump in May at the White House where he was polite but firm Trump traveled to Canada for the G summit in Alberta where Carney noted that Canada and the U S had set a -day deadline for arrangement talks Trump in a post on his social media grid last Friday announced Canada had informed the U S that it was sticking to its plan to impose the digital services tax which applies to Canadian and foreign businesses that engage with online users in Canada The digital services tax was due to hit companies including Amazon Google Meta Uber and Airbnb with a levy on revenue from Canadian users It would have applied retroactively leaving U S companies with a billion U S bill due at the end of the month Rescinding the digital services tax will allow the negotiations of a new economic and protection relationship with the United States to make vital progress Canadian Finance Minister Fran ois-Philippe Champagne mentioned in a report Trump s announcement Friday was the latest swerve in the agreement war he s launched since taking office for a second term in January Progress with Canada has been a roller coaster starting with the U S president poking at the nation s northern neighbor and repeatedly suggesting it would be absorbed as a U S state Canada and the U S have been discussing easing a series of steep tariffs Trump imposed on goods from America s neighbor Trump has imposed tariffs on steel and aluminum as well as tariffs on autos He is also charging a tax on imports from the majority countries though he could raise rates on July after the -day negotiating period he set would expire Canada and Mexico face separate tariffs of as much as that Trump put into place under the auspices of stopping fentanyl smuggling though chosen products are still protected under the U S -Mexico-Canada Agreement signed during Trump s first term Source