Canada insists on retaining the digital tax under pressure from the United States.

Gate News bot message, although acknowledging that investors may bear financial impacts due to the provisions in U.S. President Trump's tax and spending legislation, the Canadian Finance Minister stated that the government intends to continue imposing the digital services tax. Officials from the Biden administration had warned Canada long ago that if the country did not abandon its digital services tax, there would be consequences.

The Wall Street Journal reported that during discussions at the G7 summit held in western Canada this week, U.S. officials reiterated their dissatisfaction with the tax.

Canadian Finance Minister Chrystia Freeland said on Thursday that the digital tax is Canadian law and will remain in effect. However, Trump's tax and spending bill has now been submitted to the Senate for review, which envisions a significantly increased tax rate of up to 50% on dividends earned by companies, individuals, and retirement funds that are subject to the digital tax in the country of origin.

This move will affect Canadian investors, companies, and pension funds. Tax lawyers from the Canadian firm McCarthyTetrault stated in a report this week: "The potential significant impact facing Canadian investors is not at all pleasant."

These lawyers stated that, as part of a new economic and security agreement with the United States, Carney may ultimately abandon this tax.

Shang Pengfei stated that Canada may be affected by the tax and spending bill, and mentioned that global officials are discussing the potential consequences, but he did not elaborate.