US-Canada Trade War Averted: Digital Tax Retreat
2025-06-30
A potential trade war between the US and Canada was averted after Canadian Prime Minister Mark Carney rescinded the country's digital services tax on US tech companies. President Trump had previously suspended all trade talks with Canada in response to the tax, threatening retaliatory tariffs. The move highlights the high stakes involved in maintaining the deeply integrated trade relationship between the two nations. While Canada claims the tax repeal is a step towards a broader trade agreement, the incident underscores existing tensions and the US's powerful negotiating position.