The federal government has formally rescinded its Digital Services Tax (DST) to resume trade negotiations with the United States after President Donald Trump cut off trade talks.
According to the release, Carney and Trump have agreed to resume discussions.
Today, Carney said the timing of the repeal was critical, given that the tax was scheduled to begin collection on June 30.
“It doesn’t make sense to collect tax from people and then remit them back,” he said. “It provides some certainty… and the negotiations have restarted. We’re going to focus on getting the best deal for Canadians.”
He added that he had a “good conversation with President Trump” yesterday evening and that ministers François-Philippe Champagne and Dominic LeBlanc had also engaged with their U.S. counterparts ahead of the renewed talks.
Finance Minister François-Philippe Champagne said legislation will be introduced shortly to repeal the Digital Services Tax Act. He emphasized that the government’s priority is to secure a strong agreement that supports long-term growth.
“Canada’s new government is focused on building the strongest economy in the G7 and standing up for Canadian workers and businesses,” Champagne said. “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.”
Carney acknowledged the political and economic sensitivities involved but stressed that the government remains committed to a comprehensive deal that reflects Canadian interests.
“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” he said.
While key details of the proposed deal have yet to be made public, officials say the talks will address economic integration, security cooperation, and digital governance.