Canada Changes Its Mind: Digital Tax Dropped! 🇨🇦
Hey friends! Have you ever had a disagreement with your buddies about sharing your toys or games? Well, countries sometimes have disagreements too, but about big things like money and trade!
What’s Happening?
The United States (that’s the U.S. 🇺🇸) was upset because Canada 🇨🇦 wanted to put a digital services tax on big American tech companies like Amazon, Google, and Meta (the company that owns Facebook and Instagram!). This tax meant those companies would have to pay extra money when they earn money from Canadian users.
But guess what? Canada decided to cancel that tax! Now, the U.S. and Canada can be friends again and start talking about trade deals.
Why Did Canada Change Its Mind?
Well, the U.S. was going to put big tariffs (that’s like extra fees) on things it buys from Canada if they didn’t cancel the tax. So Canada thought it was better to drop the tax so they could keep trading happily.
But What About the European Union?
The European Union (we can call it the EU 🇪🇺) is a group of countries in Europe. They have their own rules about digital services, called the Digital Markets Act and the Digital Services Act. The U.S. wants the EU to change these rules, but the EU says, “No way!”
The EU thinks their rules are important and fair, and they don’t want to change them just because the U.S. asks. They want to keep their rules to make sure big tech companies play nicely in their countries.
What’s Next?
There’s a big deadline coming up on July 9. If the U.S. and other countries don’t make deals, the U.S. might put big tariffs on things it buys from those countries. That could make stuff more expensive!
The EU is sending a representative to the U.S. soon to keep talking. Let’s hope they can find a way to agree!
Why Does This Matter?
These decisions can affect prices and how companies like your favorite apps or games operate. Even though it might seem far away, what countries decide can impact our everyday lives!
Stay curious and keep an eye on how countries work together. It’s like a big puzzle they’re all trying to solve! 🧩
Reference(s):
Canada backs down, EU holds firm as U.S. tariff deadline looms
cgtn.com
