Carnet 49An independent journal, with its receipts
Français

EventAction

Canada rescinds its digital services tax and halts the 30 June collection "to advance broader trade negotiations with the United States"

Finance Minister François-Philippe Champagne announced on 29 June 2025 that Canada would rescind its Digital Services Tax, halt the collection due on 30 June and soon bring forward legislation to repeal the Digital Services Tax Act. The Department of Finance said the move was made "in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," and that Prime Minister Carney and President Trump had agreed to resume negotiations with a view to a deal by 21 July 2025. The announcement came two days after Trump said he was ending trade talks over the tax.

Date
Kind
Trade talks
Where
Canada
Evidence
Action: Something was done: a law switched on, a tariff imposed, money committed. How evidence is weighed
Who
Government of Canada (acted)

Sources

Quotes

“To continue trade negotiations with the U.S., Canada announced its intention to rescind the Digital Services Tax Act and cancelled the first payment deadline of June 30, 2025.”

From Blakes (Blake, Cassels & Graydon): U.S.–Canada Tariffs: Timeline of Key Dates and Documents, timeline entry for June 29, 2025 (quoted in coverage, not taken from the original)

Claims that rest on this event

How it bears on the outcome

ExplanationFitWhy
C0 Ottawa as victimFits moderateRescinding the tax within two days of the US ending talks, at the cost of expected revenue, is what you would expect from a government on the receiving end of pressure.
C1 Ottawa opportunisticNeutral weakA concession to keep talks going shows no use of the crisis to advance other aims.
C2 Ottawa in no hurryAgainst weakA quick concession aimed at a deal by 21 July would be somewhat surprising for a government in no hurry to end the crisis.
C3 Ottawa coordinating with WashingtonNeutral weakA concession following a public US ultimatum fits coordination no better than the other readings.