Amazon to Google: List of tech giants to take a hit from Canada's Digital Services tax amid Trump trade row

Canada's Digital Services Tax to hit Apple, Amazon, Google amid Trump trade row - List of companies that'll take a hit

Published on: Jun 28, 2025, 03:59:42 IST

By Yash Nitish Bajaj

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President Donald Trump lashed out at Canada for imposing a Digital Services Tax (DST) on American tech companies. In a statement on Truth Social, the 79-year-old said he is calling off trade negotiations with Ottawa, and a new tariff rate will be announced within a week.

Canada's Digital Services Tax is expected to hit Amazon (Unsplash)

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump wrote in a scathing post.

Canadian PM Mark Carney, however, insisted that his cabinet will continue to engage in trade negotiations. "We will continue to conduct these complex negotiations in the best interest of Canadians," he said, adding that he had not spoken to Trump on the day.

The Digital Services Tax policy imposes a 3% tax on revenue from specific digital services provided to Canadian users, targeting companies with global revenue of €750 million (~US$801 million) and Canadian digital revenue exceeding C$20 million (~US$14.8 million) annually.

Retroactive to January 1, 2022, with payments due by June 30, 2025, the DST primarily affects US tech giants due to their massive revenue in Canada’s digital market.

Here are the US tech companies that'll take a hit from DST

1. Google (Alphabet Inc)

Google is expected to face the largest DST burden due to its extensive online advertising revenue in Canada. The DST targets ad services like Google Ads and YouTube, which dominate Canada’s digital advertising market. Exact figures are not known at the moment.

2. Meta (Facebook, Instagram)

Meta’s social media services and advertising platforms generate massive Canadian revenue. The DST applies to revenue from user engagement and targeted ads, core to Meta’s model.

3. Amazon

Amazon’s online marketplace services and cloud computing (AWS) generate substantial Canadian revenue. The DST targets marketplace sales and user data licensing.

4. Apple

Apple’s App Store, Apple Music, and iCloud services fall under the DST’s scope for marketplace and data licensing revenue.

ABOUT THE AUTHOR
Yash Nitish Bajaj
Yash Bajaj is a Chief Content Producer with a strong foundation in US coverage, digital strategy, and audience-focused storytelling. As part of the US Desk at Hindustan Times, he covers a wide range of topics - from American politics to sports (NFL, NBA, derbies, MLB and more). Before joining Hindustan Times, Yash served as Deputy News Editor at Times Now, where he oversaw international coverage and led a team of six. In this role, he significantly expanded global traffic through strategic planning, SEO-driven content execution, and meticulous trend tracking across platforms. He is experienced in managing high-pressure breaking-news shifts, coordinating live coverage, and building newsroom systems that improve speed, accuracy, and reach. Prior to Times Now, Yash held a position at Opoyi, where he headed the Sports and US news team. He developed broad editorial strategies, guided reporters across multiple beats, and played a key role in recruiting and training new talent. His responsibilities also extended to social media management and experimenting with innovative content formats. A passionate NFL fan, Yash is a die-hard supporter of the Cincinnati Bengals and has followed Joe Burrow closely since his college days at LSU. Whether breaking down top players' latest performance, analyzing team performances, or tracking roster moves, he brings the same dedication and sharp storytelling to his sports coverage as he does to American politics and breaking news. When he’s not writing, Yash can often be found watching games or debating the latest NFL storylines with fellow fans. Yash holds a Bachelor of Mass Media (Journalism) from HR College, Mumbai University. His interests extend well beyond the newsroom: he is an enthusiastic explorer of AI tools, a movie buff with an ever-growing watchlist, and someone who enjoys unraveling conspiracy theories for fun.Read More

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