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OTTAWA – Canada will carry out a digital service tax (DST) on technological companies, that President Donald Trump described “a direct and flagrant attack in our country” in a truth of truth on Friday in which he declared that his administration “put an end to all discussion on trade with Canada immediately”.
Friday, the office of Canadian Prime Minister Mark Carney published a response in one line to the president’s announcement.
“The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses,” he said.
Trump says we finish all business discussions with Canada on digital services tax
President Donald Trump meets Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. (Reuters / Kevin Lamarque / Reuters)
The first payment for the 3% DST is still due on Monday, which Canada’s financial service confirmed to Bloomberg News, and covers income from digital services collected from Canadian users retroactively at 2022, amounting to around $ 2 billion for companies such as Amazon, Meta and Google.
Last week, Canadian Minister of Finance François-Philippe Champagne told journalists that the tax could be negotiated in the broader trade discussions in Canada.
In a statement published on Friday, the Canada Council of Affairs said it has long warned that “the implementation of a unilateral digital services may risk undercover Canada’s economic relations with its most important trading partner, the United States. This unhappy development has now become.”
“In an effort to put commercial negotiations on the right track, Canada is expected to present an immediate proposal to eliminate the TRS in exchange for eliminating the United States prices,” said Goldy Hyder, President and Chief Executive Officer.
The vehicles cross the blue water bridge over the St. Claire river in Port Huron, Michigan de Sarnia, Canada, March 18, 2020, in Port Huron, Michigan. (Photo by Jeff Kowalskyafp via Getty Images / Getty Images)
Canada ready for Trump’s price fight while country leaders threaten reprisals: “Dollar-for-Dollar”
Doug Ford, Prime Minister of Ontario – the largest province in Canada – called for a “break” in the implementation of the tax, which entered into force last June.
“For our American partners, it is nothing more than an unjust tax that puts millions of Canadian jobs in danger,” he said in a speech last October.
However, in an interview with Fox News Digital, Frank McKenna, a former Canadian ambassador to the United States, said Trump’s surprise statement on the end of trade with Canada reveals “how difficult it will be”.
“It is an extraordinary action on the part of a neighbor and a trading partner, and it shows how unpredictable and chaotic the United States under President Trump,” said McKenna, current president of Brookfield Corp. and vice-president of TD Securities.
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Bloomberg reported on Friday that the DST would not affect the recent G7 agreement which led to the abolition of the “revenge tax” proposal from article 899 of the Trump tax bill, according to the Canadian Finance Department.
