World trade
Canada and the USA will resume trade talks
Again and again Trump provokes Canada to want to annex it as a US state. On Friday he terminated all trade talks with the neighboring country – which now announces a new turn.
Canada and the United States take up their trade talks again. This was announced by Canadian Prime Minister Mark Carney on Sunday evening (local time). Canada has withdrawn his plan to tax US technology companies in anticipation of “a comprehensive trade agreement that is advantageous for both sides”. The tax should come into force this Monday. The United States is by far the most important trading partner for Canada.
On Friday, US President Donald Trump announced “all” trade talks with Canada and threatened the neighboring country with new tariffs. As the reason for the demolition of the trade talks, Trump cited the Canada planned introduction of a digital tax to business in American companies. This is “a direct and unabashed attack on our country,” said Trump. Canada probably copy the European Union, which did that too. There are ongoing discussions with the EU.
The Canadian government now announced that Carney and Trump had agreed to resume negotiations in order to reach an agreement by July 21, 2025. Canada’s Finance Minister François-Philippe Champagne said that the lifting of the planned digital tax would make it possible for negotiations to make a new economic and security relationship with the United States decisive progress.
The Canadian government had introduced a new digital tax (DST) a year ago, i.e. during the term of office of US President Joe Biden. According to the information, the DST obliges large domestic and foreign companies to pay a three percent tax on certain sales, which they achieve by online users in Canada. With the procedure, Canada wants to ensure a taxation of digital companies where they make profit – in this case in the American neighboring country.
dpa
Source: Stern
