USA (Europe Brief Newspaper): The White House announces immediate resumption of US-Canada trade negotiations following Canada’s withdrawal of digital services tax on American tech firms.
Following Canada’s repeal of its digital services tax that targeted American tech companies, White House economic adviser Kevin Hassett announced Monday that the United States will immediately resume trade talks with Canada.
“Absolutely,” Hassett said on Fox News when asked about the talks restarting. President Donald Trump asked the Canadians to take the tax off at the G7 meeting in Canada, he said.
“It’s something that they’ve studied, now they’ve agreed to, and for sure, that means that we can get back to the negotiations.”
How will the US’s immediate restart of trade talks affect Canada-US relations?
A more cooperative environment is promoted by swiftly starting talks again following the DST repeal, which shows that both parties are prepared to settle disagreements diplomatically rather than through tariffs or retaliatory actions.
With over $400 billion in trade between the two nations each year, the decision lessens uncertainty for investors and businesses on both sides. Cross-border trade and economic expansion are facilitated by this stability.
Canada has avoided proposed U.S. tariffs on Canadian goods by eliminating the DST, protecting market access and avoiding possible financial harm to Canadian exporters.
This development raises the possibility of a mutually advantageous accord, which both governments hope to finish by July 21, 2025.
