March 12th, 2025
U.S. Tariffs and Canada's Response: Uncertainty Complications Tariff Mitigation
As the U.S.-Canada trade standoff continues, Canadian business should explore strategies to mitigate tariff risk—stay informed here.
Update: U.S. House Tax Bill Impacting Canadian Businesses
Posted on July 7th, 2025 in Cross-border Tax
On July 4, 2025, President Trump signed the “One Big Beautiful Bill” into law (review original article).
Of particular note for Canadian stakeholders is the exclusion of Section 899, also known as the “revenge tax.” This provision targeted residents of countries with discriminatory tax policies, such as Canada’s former Digital Services Tax (DST), and threatened to disrupt existing treaty benefits and preferred withholding rates. After sustained opposition from international allies, businesses, and experts, Section 899 was ultimately removed from the final bill, preserving favourable tax conditions for Canadian investors in the United States.
In a reciprocal move, Canada officially repealed its Digital Services Tax on U.S. companies on June 29, 2025, marking a strategic step toward advancing trade negotiations and restoring bilateral goodwill.
These decisions reflect a meaningful de-escalation in digital taxation tensions and signal a renewed willingness by both countries to prioritize investment stability and long-term bilateral growth.
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