OTTAWA – U.S. Commerce Secretary Howard Lutnick thanked Canada for rescinding its digital services tax in a move to resume trade negotiations with the United States.
In a post on social media, Lutnick says the tax would have been “a deal breaker” for any trade deal with the U.S.
The Canadian government announced late Sunday that it was dropping the tax after a phone call between Prime Minister Mark Carney and U.S. President Donald Trump.
The move came just before the first payment under the tax was going to come due for major tech companies like Amazon and Google.
Trump had said on Friday that the U.S. was terminating all trade talks with Canada because of the tax.
The president had called it a “direct and blatant attack” on the U.S. and threatened Canada with another round of tariffs.
This report by The Canadian Press was first published June 30, 2025.
