HomeEconomyUS, Canada to resume trade talks after Ottawa drops digital tax

US, Canada to resume trade talks after Ottawa drops digital tax

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The United States will instantly resume commerce talks with Canada after Ottawa scrapped its digital companies tax (DST) geared toward U.S. expertise firms, White House financial adviser Kevin Hassett mentioned Monday.

“Absolutely,” Hassett informed Fox News when requested if talks would restart. “President Trump asked the Canadians to take the tax off at the G7 meeting in Canada. It’s something they’ve studied, now they’ve agreed to it, and for sure, that means we can get back to the negotiations.”

The announcement adopted Canada’s Sunday night choice to revoke the DST, which had been a serious sticking level in bilateral discussions. U.S. President Donald Trump had introduced on June 27 that commerce negotiations with Canada have been terminated “effective immediately” as a result of what he referred to as an “egregious” tax on U.S. corporations.

Canadian Prime Minister Mark Carney confirmed the coverage reversal in an announcement, saying the transfer would help “a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis.”

Carney added that Canada’s new authorities stays dedicated to securing a deal that advances the pursuits of Canadian staff and companies. “In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” he mentioned.

The developments mark a notable shift following weeks of escalating rhetoric and underline renewed efforts by either side to revive financial cooperation amid broader talks on a redefined commerce and safety framework.

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