Digital taxes are proving a stumbling block in Washington’s negotiations with major trading partners.
Canada said it would rescind its digital services tax in order to restart talks after they were canceled by US President Donald Trump, who described the tax policy as a “direct and blatant attack.”
Washington views digital taxes as non-tariff barriers which disproportionately target US tech giants, and the issue has also proved a sticking point with the European Union: Brussels has indicated it may soften the implementation of its own digital rules, but has faced pushback from European parliamentarians as well as its own competition chief.
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