The G7 summit in Kananaskis, Alberta, earlier this month, proved to be a pivotal moment as President Trump reportedly pressured Canadian Prime Minister Mark Carney to scrap the digital services tax. White House economic adviser Kevin Hassett confirmed that the tax was a key point of discussion, leading to Canada’s eventual reversal.
The controversial tax, set to target the Canadian revenues of major US technology companies, had been a significant irritant for President Trump, who subsequently halted all trade discussions with Canada until it was withdrawn. This direct pressure during the G7 summit appears to have been highly influential.
Prime Minister Carney confirmed that his decision to abandon the tax was made to revive crucial trade discussions with the United States, which had been put on hold due to the dispute. The tax, initially conceived to ensure fair contributions from global tech giants, was expected to generate billions in revenue for Canada.
The revelation of the G7 discussion highlights the direct and personal nature of the diplomatic pressure applied by the US. It underscores how high-level international meetings can significantly impact bilateral trade disputes and domestic policy decisions.
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