Key Facts
• June 27, 2025: U.S. announces end of trade talks with Canada over digital tax.
• Canada’s Digital Services Tax (DST) targets online ads and streaming services.
• U.S. Trade Representative (USTR) to investigate DST fairness under Section 301.
• Canadian DST retroactively applies to 2022, with first payment due June 30, 2024.
• U.S. companies like Google may owe up to $3 billion (approx. ¥430 billion).
• President Trump calls DST a “direct and blatant attack” on the U.S.
• Canada’s Prime Minister Carney prioritizes national interests in ongoing negotiations.
Summary
The U.S. government, under President Trump, has announced the termination of all trade negotiations with Canada due to the implementation of Canada’s Digital Services Tax (DST). The tax, which applies to online advertising and streaming services, is set to take effect in 2024 but retroactively covers revenues from 2022. U.S. companies, including Google, could face tax payments of up to $3 billion. The U.S. Trade Representative (USTR) plans to investigate the fairness of the DST under Section 301 of U.S. trade law. President Trump criticized the tax as a “direct and blatant attack” on the U.S., while Canada’s Prime Minister Carney emphasized the importance of prioritizing Canadian interests in ongoing negotiations. The first payment deadline for the DST is June 30, 2024.
