
Canada cancelled its digital services tax. What was it and why did the U.S. hate it?
OTTAWA — Tech giants such as Amazon and Google will not have to shell out close to $2 billion as expected today, as Canada moved to cancel the controversial digital services tax on Sunday, just one day before the first payment was due.
The announcement from Finance Minister François-Philippe Champagne came late Sunday evening, following a phone call between Prime Minister Mark Carney and U.S. President Donald Trump.
That call concluded a flurry of discussion between the two countries since Trump suddenly announced on Friday afternoon that he was ending all trade talks with Canada and threatened new tariffs.
But the standoff had really been building for years.