Canadian businessman Kevin O’Leary discusses the pricing fight and Canada and the future of the “big, beautiful bill” on “evening edition”.
Canadian Prime Minister Mark Carney will take up business discussions with US President Donald Trump after Canada said late on Sunday that it cancels a digital service tax on American technological companies.
The Canadian government has declared that it cancels the digital services tax “in anticipation of a fully beneficial commercial arrangement with the United States”.
“In accordance with this action, Prime Minister Carney and President Trump have agreed that the parties will resume negotiations to engage in an agreement by July 21, 2025,” the Canada Finance Ministry said in a press release.
He added that a collection of June 30, 2025 will be interrupted and that legislation is pending to cancel the law on digital services tax.
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President Donald Trump meets Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. (Reuters / Kevin Lamarque / Reuters)
Canada’s digital services tax entered into force in June 2024 and requires large companies, whether in Canada or elsewhere, to pay a 3% tax on income won by engaging with online users in Canada if they meet certain conditions.
Trump was dismissed on Friday, dismissed business discussions with Canada, citing the digital services tax on American technological companies like Amazon, Meta, Google and Apple, among other things, as reason.
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“They obviously copy the European Union, which has done the same thing, and is currently in discussion with us, also. On the basis of this blatant tax, we put at the end of all the discussions on trade with Canada, with immediate effect,” Trump wrote in an article on Truth Social.
Mark Carney, Prime Minister of Canada, speaks during a campaign rally in Calgary, Alberta, Canada, Tuesday, April 8, 2025. (Gavin John / Bloomberg / Getty Images)
Trump said that the administration would inform Canada in the “next seven-day period” of which price it will pay to do business with the United States
The president added in his post that Canada is “a very difficult country with which trade” and said that Canada had taken rates of up to 400% on American dairy products.
The breakdown of commercial negotiations followed the G7 meeting of the two leaders at the beginning of the month, and Carney said they had agreed to conclude a new economic agreement within 30 days.
Abu Dhabi, United Arab Emirates-May 16: US President Donald J. Trump speaks during an American-UAEE investment forum alongside the US Treasury Secretary, Scott Bessent (R) in Qasr al-Watan, Presidential Palais in the United Arab Emirates, May 16, May 16, May 16, May 16, May 16, May 16, May 16, May 16, May 16, May 16, May 16 (Photo of Win McNamee / Getty Images / Getty Images)
The United States is the largest trading partner in Canada, while Canada is the largest importer in American exports and one of the three main sources of American imports.
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Canada had escaped the broad prices of Trump imposed in April but faces 50% of steel and aluminum tasks.
Eric Revell and Reuters of Fox Business contributed to this report.
