Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax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Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax

 

TORONTO: Canadian Prime Minister Mark Carney said late Sunday trade talks with US have resumed after Canada rescinded its plan to tax US technology firms.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.


Progress for Ukraine talks in Paris uncertain with US focus shifting to Venezuela

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Progress for Ukraine talks in Paris uncertain with US focus shifting to Venezuela

  • Ukraine’s allies are meeting in Paris to discuss security guarantees after a potential ceasefire with Russia. The Trump administration’s focus on Venezuela could complicate progress
  • France and the UK lead efforts to strengthen post-ceasefire defenses for Ukraine, possibly with European forces

PARIS: Ukraine’s allies are meeting Tuesday in Paris for key talks that could help determine the country’s security after a potential ceasefire with Russia. But prospects for progress are uncertain with the Trump administration’s focus shifting to Venezuela.
Before the US capture of Venezuelan leader Nicolás Maduro, French President Emmanuel Macron had expressed optimism about the latest gathering of so-called “coalition of the willing” nations. For months, they have been exploring how to deter any future Russian aggression should it agree to stop fighting Ukraine.
In a Dec. 31 address, Macron said that allies would “make concrete commitments” at the summit “to protect Ukraine and ensure a just and lasting peace.”
Macron’s office said Tuesday’s meeting will gather an unprecedented number of officials attending in person, with 35 participants including 27 heads of state and government. The US will be represented by President Donald Trump’s envoys, Steve Witkoff and Jared Kushner.
Macron’s office said the US delegation was initially set to be led by Secretary of State Marco Rubio, who changed his plans for reasons related to the military intervention in Venezuela.
Participants seek concrete outcomes on five key priorities once fighting ends: ways to monitor a ceasefire; support for Ukraine’s armed forces; deployment of a multinational force on land, at sea and in the air; commitments in case there’s another Russian aggression; and long-term defense cooperation with Ukraine.
But whether that’s still achievable Tuesday isn’t so clear now, as Trump deals with the aftermath of his decision to effect leadership change in Venezuela.
Ukraine seeks firm guarantees from Washington of military and other support seen as crucial to securing similar commitments from other allies. Kyiv has been wary of any ceasefire that it fears could provide time for Russia to regroup and attack again.
Recent progress in talks
Before the US military operation targeting Maduro, Witkoff had indicated progress in talks about protecting and reassuring Ukraine.
In a Dec. 31 post, Witkoff tweeted that “productive” discussions with him, Rubio, and Kushner on the US side and, on the other, national security advisers of Britain, France, Germany and Ukraine had focused on “strengthening security guarantees and developing effective deconfliction mechanisms to help end the war and ensure it does not restart.”
France, which with the United Kingdom has coordinated the monthslong, multination effort to shore up a ceasefire, has only given broad-brush details about the plan’s scope. It says Ukraine’s first line of defense against a Russian resumption of war would be the Ukrainian military and that the coalition intends to strengthen it with training, weaponry and other support.
Macron has also spoken of European forces potentially being deployed away from Ukraine’s front lines to help deter future Russian aggression.
Important details unfinalized
Ukraine’s President Volodymyr Zelensky said during the weekend that potential European troop deployments still face hurdles, important details remain unfinalized, and “not everyone is ready” to commit forces.
He noted that many countries would need approval from parliament even if leaders agreed to military support for Ukraine. But he recognized that support could come in forms other than troops, such as “through weapons, technologies and intelligence.”
Zelensky said that post-ceasefire deployments in Ukraine by Britain and France, Western Europe’s only nuclear-armed nations, would be “essential” because some other coalition members ”cannot provide military assistance in the form of troops, but they do provide support through sanctions, financial assistance, humanitarian aid and so on.”
“Speaking frankly as president, even the very existence of the coalition depends on whether certain countries are ready to step up their presence,” Zelensky said. “If they are not ready at all, then it is not really a ‘coalition of the willing.’”