U.S.-Canada Trade Talks Back on Track as Digital Tax Dropped
The U.S. has resumed trade negotiations with Canada after Canada ceased its digital services tax aimed at U.S. technology firms. The decision has prompted optimism about trade deals and market uplift. The U.S. Commerce Secretary acknowledged the move as Canada seeks to finalize a trade agreement by July 21.
The United States and Canada have restarted trade negotiations following Canada's decision to scrap a controversial digital services tax. The tax, aimed at American tech companies, was lifted just hours before its planned implementation, reviving trade talks that were previously put on hold.
Economic Adviser Kevin Hassett confirmed that discussions would proceed, a sentiment echoed by President Trump, who had earlier urged Canada to eliminate the tax. The tax removal comes amid heightened optimism regarding potential trade deals, particularly with the looming July 9 deadline that could see significant tariff adjustments on imports.
Business leaders responded positively to the decision, anticipating the move will ease economic tensions and advance a sustainable trade agreement. Canada's move is seen as a strategic effort to foster better trade relations with the U.S., its largest trading partner, while aligning with multilateral approaches to digital taxation.
(With inputs from agencies.)
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