WASHINGTON—The U.S. on Tuesday urged Canada to abandon its plan to impose a digital service tax on large businesses, warning that Washington would examine all options under bilateral trade agreements and domestic law to retaliate if such a levy is adopted.
The Office of the U.S. Trade Representative said it has filed comments with the Canadian government raising “serious concerns” about Canada’s proposed plan to apply a 3% tax on certain revenue earned by large companies that provide digital services to Canadian users or sales of Canadian user data.
