Canada drops the large technology tax to please Trump

Canada canceled large technology companies in the United States after President Donald Trump threatened to cut commercial talks in response to fees. Sunday, The Canadian government announced It will not implement the digital services tax because it works to reach a trade agreement with the United States by July 21.

The digital services tax targeted the US -based technology companies such as Meta, Amazon, Google and Uber with 3 percent fees on revenue gained from markets online, ads, social media and the sale of Canadian user data. The tax was officially entered into force last year, but Canada planned to start collecting payments, which would have been applied retroactively until 2022, on Monday. The first round of payments amounted to about 3 billion dollars in the fees, According to a commercial group Support of large technology companies.

Trump’s administration has Likewise, pressure In the UK to drop the digital services tax, which is chasing technology companies in the United States. The tax is still valid, although White House Trade Adviser Peter Navarro He said last month The United States is still in “negotiations” with the United Kingdom due to the fees.

Last week, President Trump described the Kinda digital services tax as a “flagrant attack on our country” and said that the United States “ends all discussions on trade with Canada” as a result of the country A decision to move forward With fees. Canada It was received with an additional cost of 50 percent On steel imports that exceed the newly imposed share.

“The cancellation of the digital services tax will allow negotiations related to a new economic and security relationship with the United States to achieve vital progress and enhance our work to create job opportunities and build prosperity for all Canadians,” François Felipe, Minister of Finance and National Herouz said in a statement. Canada is still facing a 25 percent tax On the goods imported from the country, along with a 50 percent tariff on steel and aluminum.