Donald Trump forces another relationship to bend to his volatile demands – We Got This Covered

Canada has canceled its plans to implement a new digital services tax on large technology companies following pressure from the United States. The decision came after growing tension between the two nations over the proposed tax measure.

According to The Washington Post, the Canadian government announced late Sunday that it would no longer move forward with the tax plan, which had targeted major tech corporations. This sudden change in policy marks a significant shift in Canada’s approach to digital economy taxation, highlighting how Trump’s reciprocal tariff threats have forced international partners to reconsider their policies.

The reversal came after President Donald Trump strongly criticized the proposed tax, calling it a ‘blatant attack’ on the United States, employing his familiar pattern of using trade pressure as diplomatic leverage. Trump’s harsh response included a threat to suspend trade talks with Canada, pushing the northern neighbor to reconsider its position on the matter.

Trade talks to resume as both nations aim for July agreement

Following Canada’s decision to withdraw the tax plan, both countries have agreed to return to the negotiating table. Prime Minister Mark Carney and President Trump have committed to working toward a new comprehensive trade agreement.

The two leaders have set an ambitious deadline of July 21 to reach what they described as a “mutually beneficial” trade deal. This timeline suggests an urgency to resolve outstanding issues between the two trading partners.

The development represents a significant diplomatic breakthrough after a period of increased tension between the United States and Canada. The removal of the digital services tax appears to have cleared a major obstacle in the bilateral relationship.

The Canadian government’s statement emphasized the importance of maintaining strong trade relations with the United States, though specific details about the upcoming negotiations were not provided. The White House has not yet issued an official response to these latest developments.