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Trump plans tariffs on Canada, France over digital services taxes
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Trump plans tariffs on Canada, France over digital services taxes
Feb 13, 2025 1:33 PM

Feb 13 (Reuters) - President Donald Trump on Thursday

said he planned to impose tariffs on Canada and France over

their digital services taxes on U.S. technology giants, which

has been a long-standing irritant.

Canada, seeking to address the challenge of taxing digital

giants like Google parent Alphabet and Amazon.com ( AMZN ) that can book

their profits in low-tax countries, began imposing the tax in

June last year.

Trump tasked his economics team on Thursday with devising a

plan to impose reciprocal tariffs on every country that levied

duties on U.S. imports.

A White House fact sheet, stating that "only America should

be allowed to tax American firms," complained Canada and France

used digital services taxes to each collect over $500 million

per year from U.S. companies.

"Overall, these non-reciprocal taxes cost America's firms

over $2 billion per year. Reciprocal tariffs will bring back

fairness and prosperity to the distorted international trade

system and stop Americans from being taken advantage of," said

the fact sheet. It gave no further details.

Last year, under the previous Biden administration,

Washington requested trade dispute settlement consultations with

Canada over the tax, calling it discriminatory.

The office of Canadian Prime Minister Justin Trudeau was not

immediately available for comment.

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