U.S. President Donald Trump abruptly cut off all trade negotiations with Canada on Friday, citing Ottawa’s Digital Services Tax (DST) for the decision. The tax, enacted last June, targets U.S. technology companies that operate in Canada but pay little tax here. Under the new tax regime, the first payments are set to be collected on Monday, June 30. The Financial Post breaks down what you need to know about the DST and why it is infuriating Trump and Americans.
https://financialpost.com/technology/canada-digital-services-tax-infuriating-donald-trump
Will Canada maintain it?
For months, executives of U.S. tech giants have pressured American policymakers over Canada’s DST. Ontario Premier Doug Ford and Canadian business groups have also pressed the Carney government to abandon the DST. And while businesses and industry groups were holding out for a last-minute suspension of the DST, finance minister François-Philippe Champagne reconfirmed last Thursday that Canada is “going ahead” with the tax. “The (DST) is in force and it’s going to be applied,” he said. Parliament Hill’s firm stance on maintaining the DST comes despite a recent Group of Seven (G7) agreement that succeeded in axing the Section 899 “revenge tax” provision from Trump’s “big, beautiful bill” that would have taken aim at businesses from countries that the U.S. views as unjustly targeting American firms. Ottawa hasn’t ruled out shutting down DST discussions completely. “Obviously, all of that is something that we’re considering as part of broader discussions that you may have,” Champagne said last week, suggesting that the DST could be renegotiated given the ongoing trade talks between Canada and the U.S.
Leave a Reply
You must be logged in to post a comment.