Canada has waived a digital services tax for technology companies in order to resume trade negotiations with the United States. Finance Minister Francois-Philippe Champagne stressed that this step would accelerate progress in negotiations, create jobs and improve the well-being of Canadians. Earlier, US President Donald Trump suspended negotiations with Canada, justifying this by introducing a digital tax, and threatened with new tariffs. However, he and Canadian Prime Minister Mark Carney agreed to resume dialogue, aiming to reach an agreement by July 21. Against the background of this news, the Canadian dollar strengthened. Trade with the United States is vital for Canada, as three quarters of its exports go to its southern neighbor. This includes oil, cars, and other goods. In turn, the United States exported $440 billion to Canada last year and imported $477 billion, underscoring the seriousness of economic relations. The abolished tax, developed by the previous government of Justin Trudeau, assumed 3% of the income of companies that exceeded $14.6 million per year. He could have cost corporations billions of dollars. Similar laws are already in force in the UK and other countries.
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