Canadian business groups are cheering the withdrawal of the digital services tax, a move they say will prevent higher costs for consumers and businesses. David Pierce, vice-president of government relations at the Canadian Chamber of Commerce, stated the end of the tax “moves us one step closer to a renewed, reliable trade deal” with the United States.
The controversial tax, set to target the Canadian revenues of major US technology companies, had been a significant irritant for President Trump, who had halted all trade discussions with Canada until it was withdrawn. The swift reversal by Ottawa demonstrates the effectiveness of this pressure.
Prime Minister Mark Carney confirmed that his decision was made to revive crucial trade discussions with the United States, which had been put on hold due to the dispute. The tax, initially conceived to ensure fair contributions from global tech giants, was expected to generate billions in revenue for Canada.
The business community’s positive reaction highlights their concern that the tax would have negatively impacted the Canadian economy. Their focus now shifts to the successful negotiation of a new trade agreement with the US, which they view as essential for economic stability.
