U.S. Commerce Secretary Howard Lutnick thanked Canada for canceling its digital services tax, saying it helped restart trade talks with the United States.
Lutnick posted on social media that the tax would have been a “deal breaker” for any agreement between the two countries.
Canada dropped the tax after a phone call between Prime Minister Mark Carney and U.S. President Donald Trump, just before big tech companies like Amazon and Google were set to make their first payments.
Last Friday, Trump said he was ending all trade talks with Canada over the tax, calling it a “direct and blatant attack” on the U.S. He also warned Canada that more tariffs could be coming.
