The American secretary of trade, Howard Lunick, thanked Canada for abandoning its tax on digital services in order to resume trade negotiations with the United States.
“Thank you in Canada for deleting his tax on digital services, which was aimed at stifling American innovation and would have been an obstacle to any trade agreement with the United States,” said Lunick on social networks.
Ottawa announced Sunday evening that he was giving up this tax following a telephone interview between Prime Minister Mark Carney and US President Donald Trump.
This decision was made just before the first payment for this tax was due for large technological companies such as Amazon and Google.
Trump said on Friday that the United States would end all trade negotiations with Canada because of this tax. He described this “direct and obvious attack” measure against the United States and threatened Canada for a new series of customs prices.
The Canada Chamber of Commerce described the decision to abandon the “judicious” tax.
“This tax would have weighed on Canadian consumers, businesses and investors in the form of an increase in costs and would have harmed our economy at a critical time,” said David Pierce, vice-president of government relations in the Chamber, in a press release.
He said that the deletion of this tax “brings us a little closer to a renewed and reliable trade agreement” with the United States.
Rick Tachuk, president of the American Chamber of Commerce in Canada, said that the abolition of this tax was a “welcome” measure from the Canadian government.
“This is a constructive decision that allows the two countries to focus on strengthening their economic partnership. Companies on both sides of the border are counting on policies that promote certainty, collaboration and long-term growth, “he said in a press release.
