Business • Jun 30, 2025

US-Canada revive trade discussions following tech tax dispute

Trade talks between the US and Canada are back in action after Canada dropped its plan to tax big American tech companies like Amazon, Google, and Meta.
The proposed 3% tax on revenue from Canadian users had caused a major standoff, with President Trump calling it a "direct and blatant attack on our country" and putting negotiations on hold.

TL;DR

Canada hopes to smooth things over, keep trade relations steady

By pulling the plug on this tax, Canada is hoping to smooth things over and keep trade relations steady.
This move protects US tech giants from hefty retroactive charges (we're talking about $2 billion) and helps both countries get closer to a broader trade deal by July 21, 2025.
For now, it means less risk of new tariffs—and a bit more cooperation—between two major trading partners.