President Donald Trump is willing to resume trade negotiations after Prime Minister Mark Carney backpedaled on a retroactive digital service tax that was set to kick in Tuesday. Carney’s finance department on Sunday night abruptly withdrew the digital sales tax (DST) on American tech giants, after an irate response from President Donald Trump. The Digital Services Tax Act, introduced in June 2024 and retroactive to January 1, 2022, imposed a 3% tax on revenues from digital services by tech companies earning over $20 million from Canadian users. The first payment deadline was set for June 30, 2025. Kevin Hassett, director of the National Economic Council, confirmed to Fox News Monday morning the president will “absolutely” return to the bargaining table now that Carney has rescinded the tax. “One of the things that the President asked for (at the G7) was that they would take the DST tax off. It’s something that they’ve studied, now they’ve agreed to and, for sure, that means that we can get back to the negotiations,” said Hassett. .On June 27, Trump terminated trade negotiations with Canada, calling the DST “a direct and blatant attack on our country” and threatening new tariffs within a week.He emphasized that the tax targeted major U.S. tech companies like Apple, Google, Meta, and Amazon. He raised Canada’s controversial Supply Management System as his next bargaining chip, indicating he may push Canada to lift its steep taxation on dairy, poultry and eggs.“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.”“They have charged our farmers as much as 400 percent tariffs for years on dairy products,” wrote Trump. Canada was “a very difficult country to trade with,” he said.Prime Minister Mark Carney personally endorsed the dairy bill. “Supply management will never, never be on the negotiation table,” Carney told the Commons May 29.“Supply management will be protected. I am going to give a direct answer to you. We will protect supply management.”.Prime Minister Mark Carney told reporters afterward he and Trump were involved in “complex negotiations” with Canadians’ best interests in mind.The Government of Canada in a press release said the June 30, 2025 “collection will be halted,” and Finance Minister François-Philippe Champagne will soon bring forward legislation to rescind the Digital Services Tax Act.
