BY TYLER DURDEN
MONDAY, JUN 30, 2025 – 07:45 AM
Finance Minister François-Philippe Champagne wrote on X overnight that Canada has withdrawn its controversial Digital Services Tax (DST) on Silicon Valley tech giants, such as Alphabet and Meta, in order to restart stalled trade negotiations with the Trump administration. It’s another win for President Trump, as his ‘Art of the Deal’ tactics continue to bring far-left progressive countries back in line with his ‘America First’ agenda.
"Canada is engaged in complex negotiations on a new economic and security partnership with the U.S.," Champagne wrote on X late Sunday.
He continued, "Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians."
As a fresher, Canada’s DST was a 3% tax on the revenue that big tech companies earn from Canadian users, specifically from online advertising, marketplaces, and user data.
Canada’s move follows President Trump’s Friday afternoon announcement calling for all trade discussions with the country to be terminated. He also threatened to impose new tariffs within a week.
Also last Friday, Treasury Secretary Scott Bessent told CNBC that U.S. Trade Representative Jamieson Greer would investigate the tax to "determine the amount of harm to the U.S. companies and the U.S. economy in general."
The stakes are high for Canada, as three-quarters of its exports are shipped to the U.S.—including energy products, other commodities, and automobiles—so tariffs would be devastating to the local economy.
Canada has taken the common-sense approach of returning to the negotiating table with Trump to work out a trade deal that benefits everyone.
UBS analyst Jason Cheng commented overnight on the developments
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