WASHINGTON – Rep. Lisa McClain (R-Mich.) joined several colleagues from the Michigan Congressional Delegation this week in a letter to the Biden Administration pressing for a direct response to Canada’s recent enactment of a digital services tax (DST) against U.S. companies. The 3% discriminatory DST threatens to harm American workers and businesses and is a potential breach of the United States-Mexico-Canada Agreement (USMCA).
“The USMCA created a prosperous and free-flowing economic environment in North America, where commerce was able to cross borders without unwarranted restrictions,” said McClain. “The DST implemented by Canada not only threatens our trade agreement, but it will cause unnecessary harm to already struggling businesses and consumers. As one of our closest trade partners, I strongly urge them to rethink this action.”
The United States Trade Representative has recently requested dispute settlement consultations with the Canadian government to address these concerns.
The letter was also signed by Reps. Dan Kildee (MI-08), Bill Huizenga (MI-04), Elissa Slotkin (MI-07), Hillary Scholten (MI-03), and John Moolenaar (MI-02).
To read the full letter, click here.