Canadian businessman Kevin O’Leary discusses the U.S. and Canada tariff battle and way forward for the ‘big, beautiful bill’ on ‘The Evening Edit.’
Canadian Prime Minister Mark Carney will resume commerce talks with U.S. President Donald Trump after Canada stated late Sunday it was rescinding a digital companies tax on American tech firms.
The Canadian authorities stated it was rescinding the Digital Companies Tax “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
It added {that a} June 30, 2025 assortment shall be halted, and laws is pending to rescind the Digital Companies Tax Act.
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President Donald Trump meets with Canadian Prime Minister Mark Carney on the G7 summit in Kananaskis, Alberta, Canada, on June 16, 2025. (Reuters/Kevin Lamarque / Reuters)
Canada’s digital companies tax took impact in June 2024 and requires massive companies, whether or not they’re headquartered in Canada or elsewhere, to pay a 3% tax on income earned from participating with on-line customers in Canada in the event that they meet sure situations.
Trump terminated commerce discussions with Canada on Friday, citing the digital companies tax on American tech firms like Amazon, Meta, Google, and Apple, amongst others, as the explanation.
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“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote in a submit on Fact Social.
Mark Carney, Canada’s prime minister, speaks throughout a marketing campaign rally in Calgary, Alberta, Canada, on Tuesday, April 8, 2025. (Gavin John/Bloomberg / Getty Pictures)
Trump stated the administration will inform Canada throughout the “next seven day period” of what tariff it would pay to do enterprise with the U.S.
The president added in his submit that Canada is “a very difficult Country to TRADE with” and claimed that Canada has levied tariffs of as much as 400% on U.S. dairy merchandise.
The breakdown in commerce talks adopted the 2 leaders’ G7 assembly early this month, and Carney saying that they had agreed to wrap up a brand new financial settlement inside 30 days.
ABU DHABI, UNITED ARAB EMIRATES – MAY 16: U.S. President Donald J. Trump speaks throughout a US-UAE Funding Discussion board alongside U.S. Secretary of the Treasury, Scott Bessent (R) at Qasr al-Watan, presidential palace of the United Arab Emirates, on Could 16, (Picture by Win McNamee/Getty Pictures / Getty Pictures)
The U.S. is Canada’s largest buying and selling associate, whereas Canada is the most important importer of American exports and one of many high three sources of U.S. imports.
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Canada had escaped Trump’s broad tariffs imposed in April however faces 50% duties on metal and aluminum.
FOX Enterprise’ Eric Revell and Reuters contributed to this report.
