Trump Plans Tariffs on Canada, France Over Digital Services Taxes

President Donald Trump announced plans to impose tariffs on Canada and France due to their digital services taxes on U.S. technology giants. The issue of taxing tech companies like Google and Amazon, which can shift profits to low-tax jurisdictions, has been a contentious issue.

Credit: DONALD TRUMP

Canada introduced its digital services tax in June last year to tackle the tax challenges posed by tech giants. Trump directed his economic team to develop a strategy for imposing reciprocal tariffs on any country that imposes duties on U.S. imports.

A White House fact sheet argued that only the U.S. should have the right to tax American firms. It highlighted that Canada and France each collect over $500 million annually from U.S. companies through digital services taxes, costing American firms more than $2 billion yearly.

Last year, during the Biden administration, Washington initiated trade dispute settlement consultations with Canada over the tax, citing discrimination. The Canadian Prime Minister's office has not yet responded to the recent development.

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• President Trump plans tariffs on Canada and France over digital services taxes.

• Canada implemented a digital services tax last year to address tax challenges from tech giants.

• The White House aims to impose reciprocal tariffs on countries taxing U.S. imports.

Source: REUTERS