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Canada Scraps Tax on Big Tech Companies After Trump Threatens Tariff Increase

HeadlineJun 30, 2025

Canada’s government scrapped a 3% tax on technology companies’ revenue on Sunday, mere hours before it was due to take effect. The reversal came after President Trump said Friday he would pause U.S.-Canada trade talks and would set a new tariff rate on Canadian goods within the next week. Canada’s digital services tax would have raised billions of dollars of revenue annually from U.S. tech giants like Amazon, Meta and Apple. 

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