Canada announces the resumption of trade negotiations with the United States

Canada has announced that it would resume trade negotiations with the United States in the hope of reaching an agreement, after Trump had canceled these negotiations in protest against the imposition of Ottawa tax on American technology companies.

Canadian Finance Minister Francois Philip Champlan said in a statement that Trump and Canadian Prime Minister Mark Carney “agreed to resume negotiations with the aim of reaching a deal by July 21, 2025.”

The Minister also announced the cancellation of the digital services tax that was targeting major technology companies, in a move aimed at creating the atmosphere to resume trade negotiations with the United States.

Canada approved the digital tax by 3 percent last year, and began to implement it retroactively from 2022, which sparked a wide American protest, so Washington made its position on the digital tax, and considered it direct targeting of American companies such as Google and Amazon.

In response, Trump suspended negotiations with Ottawa and threatened to impose new customs duties on Canadian exports, especially in the auto and mineral sectors.

The talks between the two countries have stopped since April, but the new understanding during the Group of Seven summit, reopened the door again to a broader trade settlement.

According to the Canadian government, the abolition of the tax does not mean giving up the regulation of the digital economy, but rather a tactical measure to avoid escalation and establish the economic partnership with the United States, the largest commercial partner of Canada.