Canadian Ad Insider

Canada has officially scrapped its planned 3% Digital Services Tax (DST), set to apply retroactively to revenues from Jan 1, 2022. The reversal came just hours before its June 30 implementation, following President Trump challenging it as a “direct and blatant attack” on U.S. tech firms. In response, Ottawa immediately reinstated U.S.–Canada trade negotiations, targeting a comprehensive economic and security agreement by July 21, 2025.

Initially projected to raise roughly C$7.2 billion over five years, the tax was popular among proponents of fair digital-era taxation. However, facing U.S. retaliation—including suspended trade talks and threat of tariffs—Canada opted to withdraw the measure to safeguard its largest trading partnership and restore momentum to negotiations.