{"id":87269,"date":"2025-07-01T00:00:00","date_gmt":"2025-07-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/07\/01\/canada-revokes-digital-services-tax-on-us-tech-firms-to-resume-trade-talks\/"},"modified":"2025-07-01T00:00:00","modified_gmt":"2025-07-01T00:00:00","slug":"canada-revokes-digital-services-tax-on-us-tech-firms-to-resume-trade-talks","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/07\/01\/canada-revokes-digital-services-tax-on-us-tech-firms-to-resume-trade-talks\/","title":{"rendered":"Canada revokes digital services tax on US tech firms to resume trade talks"},"content":{"rendered":"

Canada <\/strong>removes tax in favor of US trade talks<\/strong>:<\/strong> Canada has halted its digital services tax (DST) on US tech firms to get trade talks back on track after US President Donald Trump halted negotiations on Friday<\/a>, Reuters<\/a> reports. The tax was a main sticking point for the US, with Trump calling it a \u201cdirect and blatant attack\u201d on the US before halting the talks. Canada is hoping that a bilateral comprehensive trade agreement with the US could be reached by 21 July, according to a statement<\/a> from the Canadian finance ministry. <\/p>\n

SOUND SMART?<\/strong> The Digital Services Tax<\/a> Act mandates that large foreign and domestic firms pay a 3% tax on revenues earned from digital services. This includes services that rely on engagement, data, and content contributions from Canadian users, as well as certain sales or licensing of Canadian user data.<\/p>\n

REMEMBER-<\/strong> The US is ramping up efforts to finalize a number of bilateral trade agreements ahead of the 9 July tariff deadline, with both the EU<\/a> and Malaysia<\/a> hoping to secure an agreement by the deadline or get an exemption if talks linger. The US and China<\/a> finalized a minimal trade agreement last week, focused on rare earth materials delivery from China and the removal of some unannounced US export restrictions \u2014 likely on advanced microchips. <\/p>\n

\n

\n

Watchdog <\/strong>hunt on <\/strong>Boeing\u2019s Spirit acquisition<\/strong>: The UK\u2019s main competition regulator is investigating Boeing\u2019s USD 4.7 bn acquisition of US-based aerostructure manufacturer Spirit Aerosystems to determine the risk of minimized competition, Bloomberg<\/a> reports. The antitrust watchdog \u2014 the Competition and Markets Authority (CMA) \u2014will reveal its decision to either wrap up the probe or launch an in-depth investigation by 28 August. <\/p>\n

IN CONTEXT-<\/strong> CMA is conducting the first phase of an antitrust probe into the acquisition, which is scheduled to wrap by mid-2025<\/a><\/a> after Spirit shareholders approved it in February. CMA started contemplating the probe last week<\/a> \u2014 looking into whether the acquisition could influence market competition in the UK or in other markets. The transaction has a total value of USD 8.3 bn including the manufacturer's debt. The inquiry \u201cwas anticipated and is part of the normal process for acquisitions of this nature,\u201d a Spirit Aerosystems spokesperson told the news outlet.<\/p>\n

REFRESHER- <\/strong>We first learned in July 2024<\/a> that Boeing was set to acquire Spirit through an all-stock purchase at USD 37.25 a share, with Boeing taking on the manufacturer\u2019s reported net debt. Spirit also received up to USD 350 mn from Boeing in advance payments to stay afloat in November 2024<\/a> and continued to burn through banknotes. <\/p>\n","protected":false},"excerpt":{"rendered":"

Stories on our radar this morning from around the world<\/p>\n","protected":false},"author":1,"featured_media":87270,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[149],"tags":[148,145,146,32,726],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-87269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-around-the-world","tag-around-the-world","tag-aviation","tag-boeing","tag-trade","tag-usa","wpautop","entry"],"acf":{"mongo_id":"0bf330dc-e38c-40bc-ad79-c1399f770567","order":"10","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/7\/42.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Canada 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