Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax

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Canadian Prime Minister Mark Carney and US President Donald Trump arrive for a family photo during the Group of Seven (G7) Summit at the Kananaskis Country Golf Course in Kananaskis, Alberta, Canada, on June 16, 2025. (AFP/File)
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Updated 30 June 2025
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Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax

 

TORONTO: Canadian Prime Minister Mark Carney said late Sunday trade talks with US have resumed after Canada rescinded its plan to tax US technology firms.
US President Donald Trump said Friday that he was suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called “a direct and blatant attack on our country.”
The Canadian government said “in anticipation” of a trade deal “Canada would rescind” the Digital Serves Tax. The tax was set to go into effect Monday.
Carney’s office said Carney and Trump have agreed to resume negotiations.
“Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Carney said in a statement.
Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks.
Trump, in a post on his social media network last Friday, said Canada had informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada.
The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3 percent levy on revenue from Canadian users. It would have applied retroactively, leaving US companies with a $2 billion US bill due at the end of the month.
“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,” Canadian Finance Minister François-Philippe Champagne said in a statement.
Trump’s announcement Friday was the latest swerve in the trade war he’s launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president poking at the nation’s northern neighbor and repeatedly suggesting it would be absorbed as a US state.
Canada and the US have been discussing easing a series of steep tariffs Trump imposed on goods from America’s neighbor.
Trump has imposed 50 percent tariffs on steel and aluminum as well as 25 percent tariffs on autos. He is also charging a 10 percent tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire.
Canada and Mexico face separate tariffs of as much as 25 percent that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Trump’s first term.


Filipinos celebrate Christmas on a budget amid soaring costs

Children spend the afternoon at Quezon Memorial Circle in Quezon City, Philippines on Dec. 23, 2025. (PNA)
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Filipinos celebrate Christmas on a budget amid soaring costs

  • Filipinos are choosing modest Christmas gifts, scaling down year-end festivities
  • Millions look to content creators for tips on how to spend less for Christmas dinner

MANILA: As the predominantly Catholic Philippines celebrates one of its most important annual holidays on Thursday, many Filipinos have been forced to rethink their traditional Christmas celebrations amid soaring prices. 

This year, street food vendor Gemma Gracia is among those who will keep her business open during the holidays. 

“As a vendor, I’ve felt the prices go up since I also still buy at the market for our needs and for our selling needs,” she told Arab News. 

But as celebrating Christmas was important for her family, the 39-year-old has allocated 1,000 Philippine pesos ($17) for a family meal out at Jollibee, the Philippines’ biggest fast-food chain restaurant. 

“When you don’t have food to share on the table on this holiday, it’s a sad day. That’s why we make sure that we always have something on the table each year,” she said. 

For many Filipinos, the time-honored traditions of Noche Buena, or Christmas Eve, is the most awaited part of this holiday season, when dinner tables across the country are filled with a hearty selection of traditional dishes. 

Noche Buena, which is Spanish for “the good night,” is the dinner that follows the last evening mass of the season, known as misa de gallo or simbang gabi.

In the Philippines, such festive staples include meaty Filipino-style spaghetti and hamonado, the local version of a Christmas ham that usually serves as the centerpiece of Christmas dinner tables.

But the pinch from rising prices has affected Filipino shoppers in recent years, forcing them to adjust according to their budget. 

Although the country’s central bank said inflation had eased to 1.5 percent in November, many say the statistics do not reflect on-the-ground realities, where people reel from rising retail prices, shrinking portions and diminishing purchasing power of the peso. 

Allan Manansala, a 48-year-old construction worker in Manila, told Arab News that he is expecting to spend 5,000 pesos for his family of five in 2025, nearly a third of his monthly wage and about a fifth higher than what he spent in previous years. 

“I might have to skip giving my children gifts this year because of the costs,” he said. 

To get around the high costs, Manansala is skipping the Noche Buena festivities altogether and has instead decided to splurge on New Year’s Eve dinner, which is also a significant occasion in the Philippines. 

Others, like Allan Melenio, look for different ways to save up. 

“Our relative owns a meat shop, so we’re able to save on that since the prices are quite low,” he told Arab News. “But everywhere else, a piece of meat can cost so much.” 

While the economy has forced Filipinos to make smarter choices and get creative, content creators are among those offering ideas to address consumers’ woes, teaching people how to stretch their meager budgets for the holidays. 

One such tip came from Ninong Ry, a food content creator who challenged himself to prepare an eight-dish Noche Buena dinner with a budget of 1,500 pesos. Posted about two weeks before Christmas, his one-hour YouTube video has since garnered more than 1.4 million views. 

The video was also a response to comments from Philippine Trade Secretary Cristina Aldeguer-Roque, who suggested last month that 500 pesos was enough for a family of four to host a modest Christmas Eve dinner, sparking anger among Filipinos who said she was out of touch with reality. 

Jelmark Toqueb, who works as a plumber in Manila, said that the 500-peso budget was unrealistic. 

“It is clearly not enough. (Five hundred pesos) is not even enough for you to cook spaghetti with meat. Maybe just the noodles and the sauce,” he told Arab News.

For 32-year-old Toqueb and his wife, who works as a public school teacher, the holiday season remains a cherished occasion to spend quality time with the family. As their Christmas tradition involves gift-giving, he chose more modest presents this year to circumvent the high costs. 

“The prices now are different even from last year, (when they were) already high,” Toqueb said. “Even if the gift is simple, it’s fine. It’s the thought that counts.”