Canada and USA: Trade talks reignited after digital tax withdrawal!

Canada and USA: Trade talks reignited after digital tax withdrawal!

As part of efforts to find a solution to the trade dispute, the USA and Canada have decided to resume negotiations. Canada is withdrawing its announced digital tax that was intended to target US technology companies. This was reported on June 30, 2025 by the Deutschlandfunk news agency. This move is seen as a means to advance talks between the two countries.

Canadian Prime Minister Carney and US President Trump have agreed to resume talks on the trade deal. The aim is to reach an agreement by July 21, 2025. This follows a tense period in which Trump abruptly ended negotiations over the digital tax. He described the tax as an “open attack” on the US economy.

Background to the trade dispute

The upcoming negotiations are of great importance for both countries. Canada is the United States' second-largest trading partner after Mexico and the largest buyer of American exports. Last year, Canada purchased nearly $350 billion worth of goods from the United States and exported nearly $413 billion worth of goods back to the United States. In addition, immediately after the negotiations ended, Trump threatened to announce a new tariff rate on Canadian goods, which further aggravated the situation.

Given these economic interconnections, the withdrawal of the digital tax is a significant step to prevent the spread of the conflict and maintain the fundamental pillars of economic relations. Both countries seem willing to work constructively on a solution.

As talks between the two nations continue, it remains to be seen whether the negotiators will be able to reach an agreement that is acceptable to both sides. The entire situation is being closely monitored, not only by the two countries concerned, but also by other nations interested in the economic developments.

For more information on ongoing customs negotiations and trade talks, please visit Mirror Online.

Developments in this trade dispute highlight how important the relationship between Canada and the United States is for both economies. The outcome of the talks could have far-reaching consequences, both for the economic landscape of the two countries and for international trade relations as a whole.

For latest updates and more information, please follow the article on Deutschlandfunk.