By Paul Vieira
OTTAWA--Canada authorized the implementation of a digital-services tax, a move that threatens to trigger trade retaliation from Congress and the Biden administration.
A notice published late Wednesday indicated that the cabinet, led by Prime Minister Justin Trudeau, ordered the digital-services tax to be implemented June 28, or last Friday.
As a result, a 3% levy will apply to revenue from companies that provide digital services to Canadian users, or sell Canadian user data, and is retroactive to sales dating back to 2022.
U.S. officials, led by Trade Representative Katherine Tai, and members of Congress have repeatedly warned that enacting the digital-services tax would trigger trade retaliation from Washington.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
07-03-24 2121ET
