PM Carney says trade talks with US resume after Canada rescinded tech tax

Canadian Prime Minister Mark Carney said late Sunday trade talks with US have resumed after Canada rescinded its plan to tax US technology firmsUS President Donald Trump said Friday that he was suspending trade talks with Canada over its plans to continue with its tax on technology firms which he called a direct and blatant attack on our countryThe Canadian government said in anticipation of a trade deal Canada would rescind the Digital Serves Tax The tax was set to go into effect MondayCarneys office said Carney and Trump have agreed to resume negotiationsTodays announcement will support a resumption of negotiations toward the July 21 2025 timeline set out at this months G7 Leaders Summit in Kananaskis Carney said in a statementCarney visited Trump in May at the White House where he was polite but firm Trump traveled to Canada for the G7 summit in Alberta where Carney said that Canada and the US had set a 30day deadline for trade talksTrump in a post on his social media network last Friday said Canada had informed the US 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 CanadaThe digital services tax was due to hit companies including Amazon Google Meta Uber and Airbnb with a 3 per cent levy on revenue from Canadian users It would have applied retroactively leaving US companies with a USD 2 billion bill due at the end of the monthRescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress Canadian Finance Minister FrancoisPhilippe Champagne said in a statementTrumps announcement Friday was the latest swerve in the trade war hes launched since taking office for a second term in January Progress with Canada has been a roller coaster starting with the US president poking at the nations northern neighbour and repeatedly suggesting it would be absorbed as a US stateCanada and the US have been discussing easing a series of steep tariffs Trump imposed on goods from Americas neighbourTrump has imposed 50 per cent tariffs on steel and aluminum as well as 25 per cent tariffs on autos He is also charging a 10 per cent tax on imports from most countries though he could raise rates on July 9 after the 90day negotiating period he set would expireCanada and Mexico face separate tariffs of as much as 25 per cent that Trump put into place under the auspices of stopping fentanyl smuggling though some products are still protected under the 2020 USMexicoCanada Agreement signed during Trumps first termThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever