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Canada and US Trade Talks Resume After
Digital Tax Reversal

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Posted By: Dreadnought, 6/29/2025 11:20:02 PM

Canada and the United States have resumed trade negotiations after Canadian Prime Minister Mark Carney agreed to rescind the country's digital services tax on U.S. technology companies. The development follows President Donald Trump's announcement on Friday that he was suspending all trade talks with Canada "effective immediately" over the tax policy. Why It Matters Trump's Friday announcement followed Canada's confirmation that it would proceed with its digital services tax on technology giants, most of which are U.S.-based, despite a previous G7 agreement where the Trump administration had agreed to drop a retaliatory tax proposal from congressional consideration. Canada's quick reversal signals the high stakes involved in maintaining trade relationships

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Reply 1 - Posted by: bamboozle 6/29/2025 11:32:11 PM (No. 1971047)
Well, that didn't take long, did it?
14 people like this.

Reply 2 - Posted by: DVC 6/29/2025 11:41:02 PM (No. 1971048)
Canadian clown got straightened out.
12 people like this.

Reply 3 - Posted by: bpl40 6/30/2025 7:57:30 AM (No. 1971120)
Trump speaks the language they understand up north.
5 people like this.

Reply 4 - Posted by: JHHolliday 6/30/2025 8:03:49 AM (No. 1971127)
To use a poker analogy, their posturing PM thought he could bluff and win with a couple of pairs but Trump was holding four aces. A trade war is not a good thing for anybody but it would hurt Canada far worse than the US.
6 people like this.

Reply 5 - Posted by: janjan 6/30/2025 8:16:15 AM (No. 1971132)
Canada is not going to win a trade war with the US, nor is their PM going to intimidate Trump. Ever. The sooner they give up this charade the less pain and embarrassment for all of them.
7 people like this.

Reply 6 - Posted by: stevendm 6/30/2025 10:32:22 AM (No. 1971184)
Isn't it cool that we finally have a strong enough president to put aside his efforts to renegotiate our international trade agreements with the entire world, take a few weeks off to create some peace in the Middle East and Africa, and then return to the trade agreements? WINNING!!!
3 people like this.

Reply 7 - Posted by: franco 6/30/2025 11:21:50 AM (No. 1971207)
Carney's cabinet is comprised of 3/4 of the people who worked for Trudeau, so it's "Meet the new boss... same as the old boss" for Canadian businesses that were hoping for better policies from Ottawa. Carney is actually also worse than Trudeau in that he combines an academic's knowledge of economics with a fervent environmentalist's belief in "climate change"... I believe Trump also thinks Trudeau's team hoodwinked his team in the 2017 USMCA negotiations (particularly in the dairy sector, where American producers believed there were allowed into Canada tariff-free, but later found a provision slipped in that limited tariff-free sales to only 2% annual sales volume of dairy products in Canada, after which the 275% tariffs applied). So the very best forecast for Canadian trade negotiators is pain -- lots of pain.
0 people like this.

Reply 8 - Posted by: Schnapps 6/30/2025 3:06:48 PM (No. 1971279)
Agree totally with #4.. In other words Trump trumped Carney's blarney.
0 people like this.

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