EU spokesman: European digital services act not on the table at trade talks with US || Also not negotiating on digital markets act

EU spokesman: European digital services act not on the table at trade talks with US || Also not negotiating on digital markets act

In a surprising turn of events, the Canadian government has announced that it will rescind its Digital Services Tax (DST) to support ongoing negotiations for a new economic and security partnership with the United States. This decision comes in the wake of President Donald Trump's declaration on June 27 that the U.S. would terminate all trade discussions with Canada due to the planned DST implementation.

President Trump had characterized the Canadian tax as "a direct and blatant attack on our Country" and threatened to impose tariffs within a seven-day period. The U.S. goods trade with Canada totaled roughly $762 billion last year, making the U.S.-Canada trade relationship one of the most significant global partnerships [1].

The Canadian government's decision to rescind the DST was made on June 29, with the June 30, 2025, collection halted. Minister of Finance and National Revenue François-Philippe Champagne confirmed that legislation to eliminate the Digital Services Tax Act entirely would follow. This move was a direct response to Trump's announcement, which had sparked immediate and significant market reactions [2].

The rescission of the DST comes after major advertising platforms had already begun implementing surcharges to offset the tax burden. Amazon and Google, among others, had expanded their regulatory fees to include Canada, with Amazon applying a 3% rate and Google a 2.5% rate to ads served in Canada [2].

The decision to rescind the DST aligns with complex negotiations between Prime Minister Mark Carney and President Trump, who have agreed to resume discussions with a target completion date of July 21, 2025. The timeline was established during this month's G7 Leaders' Summit in Kananaskis [2].

In a separate development, an EU spokesman has stated that the European Digital Services Act is not on the table at trade talks with the U.S. Additionally, negotiations on the Digital Markets Act have been ruled out, indicating a focus on other areas of economic cooperation [3].

These developments suggest that both Canada and the U.S. are prioritizing the resolution of trade tensions to avoid potential economic disruptions. The rescission of the DST and the resumption of trade talks underscore the importance of maintaining strong economic ties between the two countries.

References:
[1] https://www.cnbc.com/2025/06/27/trump-canada-trade-talks-tariffs.html
[2] https://ppc.land/canada-rescinds-digital-services-tax-to-advance-trade-talks-with-united-states/
[3] https://www.cnbc.com/2025/06/29/european-digital-services-act-not-on-table-at-us-trade-talks.html