The US will immediately resume trade negotiations with Canada following Ottawa’s decision to drop its controversial digital services tax (DST), which was set to take effect June 30 and aimed at American technology companies.
The reversal came after direct pressure from President Donald Trump, who called the 3% tax a “direct and blatant attack on our country” in a June 28 social media post and suspended talks in retaliation.
“Absolutely,” White House Economic Adviser Kevin Hassett confirmed in a FOX News interview when asked if talks would restart. “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.”
The tax would have impacted US companies like Amazon, Google, and Meta.
Late Sunday, Canada’s government announced it would formally rescind the measure.
“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” Minister of Finance François-Philippe Champagne said in a statement.
White House Press Secretary Karoline Leavitt credited the victory to Trump’s firm stance on trade.
“Very simple,” Leavitt told reporters June 30. “Prime Minister Carney in Canada caved to President Trump and the United States of America.”
“President Trump knows how to negotiate, and he knows that he is governing the best country and the best economy in this world, on this planet,” she added. “And every country on the planet needs to have good trade relationships with the United States, and it was a mistake for Canada to vow to implement that tax that would have hurt our tech companies here in the United States.”
As sentiment continues to rise amid optimism about US trade negotiations with key partners, markets have soared.
The S&P 500 and Nasdaq both closed on June 30 at record highs for the second consecutive day, with the S&P posting its best quarterly gain since December 2023.

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Author: Elise DeGeeter
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