Industry News
Canada Changes Course on Digital Services Tax
TweetJul. 1, 2025
By:
Marvin E. McPherson
Canada rescinded its planned Digital Services Tax (DST) just before the U.S tariffs on
Canada would commence July 1, 2025. President Trump described the DST as a “direct & blatant attack” and halted trade negotiations.
The DST targeted tech giants with annual global revenues exceeding €750 million (about US $800 million) and Canadian earnings over $20 million. The tariff would have applied a retroactive 3% levy on digital services revenue (ads, online marketplaces, user data) dating back to January 2022
Canada's decision is likely to bring the U.S. and Canada back to the negotiation table and may halt new U.S. tariffs on Canadian imports.
If you have questions about this or other trade action, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.
The DST targeted tech giants with annual global revenues exceeding €750 million (about US $800 million) and Canadian earnings over $20 million. The tariff would have applied a retroactive 3% levy on digital services revenue (ads, online marketplaces, user data) dating back to January 2022
Canada's decision is likely to bring the U.S. and Canada back to the negotiation table and may halt new U.S. tariffs on Canadian imports.
If you have questions about this or other trade action, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.
