WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after Canada agreed to drop its digital service tax (DST) against American businesses amid ongoing trade negotiations with the Trump Administration:

“House Republicans have consistently stood in resistance to these unfair digital services taxes, and now thanks to President Trump’s strength and determination, we have succeeded in securing another win for the United States in fighting back against unfair foreign taxes and rebalancing our trade relationships. This announcement comes on the heels of an agreement by the G7 last week to drop discriminatory taxes against U.S. companies as a result of objections by Congressional Republicans – including an initial drafting of a policy in The One, Big, Beautiful Bill that would have provided the Trump Administration with retaliatory countermeasures – and tough negotiations by President Trump and his team to protect America’s tax sovereignty.

“The Trump Administration was willing to use every tool at its disposal to demand fairer treatment for our workers and businesses, including use of Section 301 investigative authorities that were successfully deployed during President Trump’s first term to fight back against countries that impose undue barriers to American goods and services. This is a damning contrast to the Biden Administration’s weak posture, which practically invited countries like Canada to impose unfair taxes on U.S. businesses – even as Ways and Means Republicans specifically called on President Biden to take swift and decisive action.

“Thankfully, we now have a president in the White House with the resolve to force country after country to come to the table to renegotiate our trade relationships. Other nations like France should follow Canada’s lead and halt their use of DSTs that unfairly harm American businesses, workers, and jobs.”

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