Canada ended a digital service tax that would have hit major American tech companies hard after President Donald Trump announced he was ending trade talks with the country over the levy.
Canada’s Department of Finance said Sunday that it would rescind its Digital Service Tax (DST) in “anticipation of a mutually beneficial comprehensive trade arrangement with the United States.” The reversal came after Trump said on Friday that he was “terminating” trade discussions. 
The tax, which was expected to take effect on Monday, was anticipated to have a significant impact on United States-based companies like Amazon, Google, Meta, and Apple. 
<a class="c-link c-link--focus-visible" href="https://get.dailywire.com/freedom/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=freedom&amp;utm_content=freedomeditorial" target="_blank" rel="noopener noreferrer" data-stringify-link="https://get.dailywire.com/freedom/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=freedom&amp;utm_content=freedomeditorial" data-sk="tooltip_parent" aria-describedby="sk-tooltip-75638">JULY 4 SALE: Get Six Months Of DW+ Free</a>
“Canada’s new government is focused on building the strongest economy in the G7 and standing up for Canadian workers and businesses,” <a href="https://www.canada.ca/en/department-finance/news/2025/06/canada-rescinds-digital-services-tax-to-advance-broader-trade-negotiations-with-the-united-states.html" target="_blank" rel="noopener">said</a> Minister of Finance and National Revenue François-Philippe Champagne. “Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.”
Earlier this month, Champagne said that the Digital Service Tax would be implemented despite opposition from the United States. He <a href="https://www.cbc.ca/news/politics/canada-digital-services-tax-1.7565966" target="_blank" rel="noopener">said</a> on June 19 that the tax was “going ahead” as scheduled and would be applied. 
The digital service tax was <a href="https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/digital-services-tax.html" target="_blank" rel="noopener">enacted</a> to require “foreign and domestic large businesses to pay tax on certain revenue earned from engaging with online users in Canada,” according to the Canadian government. The tax would have cost American businesses up to $2.3 billion annually, <a href="https://ccianet.org/research/reports/impacts-canada-proposed-digital-service-tax-united-states/" target="_blank" rel="noopener">according</a> to a study conducted by the Computer and Communications Industry Association. 
Canadian Prime Minister Mark Carney said Sunday that he and Trump had agreed to continue trade discussions with the hope of signing an agreement by July 21. 
The resumption of talks follows Trump&#8217;s social media berating of Canada on Friday. 
“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,” Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114756567645919781">posted</a> on Truth Social. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”
Several other trade deadlines are looming, including a July 9 cutoff for the United States and the European Union to make a deal before 50% tariffs on European imports are imposed. 

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Canada Caves: Digital Tax On U.S. Tech Scrapped After Trump Pressure

Razor-Thin Governor Primary Snaps Trump Endorsement Streak

Longtime ‘60 Minutes’ Anchor Fired After Attacks On New Leadership

Trump’s Effort To Purge DEI From Science Funding Could Be Locked Into Law

Man Arrested After Disturbing Threat To ICE Officer’s Family Caught On Camera

Trump Admin Steps In After Female Students Raise Alarm Over School’s Trans Policy

Republicans’ Latest Pro-Union Move Has Some Conservatives Sounding The Alarm

News

Amazon

Apple

Big Tech

Canada

Donald Trump

Economy

Executive

Google

Politics

Tariffs

Taxes

Trade War

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

Canada Caves: Digital Tax On U.S. Tech Scrapped After Trump Pressure