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Jul 03, 2025
Canada withdraws digital tax amid Trump's tariff threats
Canada just dropped its plan for a digital tax on big US tech firms like Google and Amazon.
This comes after President Trump broke off trade talks and threatened to impose higher tariffs on Canadian imports.
Canada's finance minister says the goal is to cool things down and keep negotiations with the US moving.
TL;DR
US has steep tariffs on some Canadian imports
Trump called the proposed tax an "attack on the US" and threatened quick retaliation.
Now, both countries are racing to settle their differences before key July deadlines.
The US already has steep tariffs on some Canadian imports, but there's hope that dropping this tax will help avoid a bigger trade fight—and maybe even lead to a new deal soon.