Canada Surrenders to Daddy Trump on Tax on Tech Services

Canada decided to join the EU in punishing US tech firms because they're mad that Elon Musk allows free speech.

President Donald Trump announced Friday he is ending trade talks with Canada over the northern neighbor's decision to impose a digital service tax on American technology companies.

Trump called Canada's decision "a direct and blatant attack on our Country" in a Truth Social post.

"They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump also wrote.

Canada is reportedly going ahead with the tax despite its inclusion in the Group of Seven (G7) agreement in which President Trump agreed to remove Section 899, also known as the revenge tax proposal, from his "Big Beautiful" tax bill, according to Bloomberg.

The tax will require digital services companies like Meta to pay 3 percent of the digital services revenue they make on Canadian users above 20 million Canadian dollars ($14.6 million) in a calendar year, according to Bloomberg.

Canada's tax will apply retroactively to 2022 and the country's Finance Department says the first payments will be due from digital companies Monday, Bloomberg reported.

Canadian Finance Minister Francois-Philippe Champagne hinted that the tax may be a potential piece of leverage in trade negotiations.

"Obviously all of that is something that we're considering as part of broader discussions that you may have," he told Bloomberg.

Trump concluded his Truth Social post with indications that the U.S. will retaliate.

"We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period," he wrote.

Industry leaders applauded Trump's move.

"This tax unfairly singles out American firms while local competitors skate by. Whether it's Brussels or Ottawa, President Trump is right to call them out and force this to change," John Czwartacki, co-founder and principal at Public Policy Solutions said in a statement provided to the Daily Caller.

I'm no fan of the social media companies but this is all about pressuring them to censor American citizens.

Canada is now groveling like a totall-cucked nation.

Canada's government announced Sunday it will cancel a controversial tax on U.S. tech giants, prompting the resumption of trade negotiations with President Trump. The decision follows Trump's warning that Canada would face steep duties for what he called a "blatant attack" on American firms.

Key Details:

Prime Minister Mark Carney personally informed President Trump of the decision to withdraw the digital services tax during a Sunday conversation.
Canadian Finance Minister François-Philippe Champagne also reengaged with U.S. Trade Representative Jamieson Greer the same day.
The tax, set to take effect Monday, was expected to cost American companies like Amazon, Google, and Apple over $2.7 billion due to its retroactive structure.

Diving Deeper:

Just two days after President Trump abruptly suspended bilateral trade talks over a digital tax targeting U.S. tech firms, Canada's government has backed down. First reported by the Wall Street Journal, Prime Minister Mark Carney's office announced that the controversial 3 percent digital services tax would be scrapped. The reversal marks a significant win for the Trump administration and clears the way for trade discussions to resume.

posted by Ace at 01:06 PM

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