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Al Jazeera
Al Jazeera
Business
Yashraj Sharma

What was Canada’s digital tax that Trump threatened trade talks over?

US President Donald Trump meets Canadian Prime Minister Mark Carney in the Oval Office of the White House in Washington, DC, on May 6, 2025 [Jim Watson/AFP]

Canada rescinded its new digital services tax last week, just days after United States President Donald Trump called off trade talks in retaliation for the levy.

In a statement on Sunday, Canadian Prime Minister Mark Carney said he and Trump had agreed to resume trade negotiations.

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