Many Canadians like to the news that, late last night, Mark Carney summarily rescinded the Digital Services Tax (DST), the tax - announced way back in 2020, but scheduled to come into force today - on profits made in Canada by foreign Internet-based companies like Amazon, Netflix, Google, Uber, AirBnB, etc.
The reason? Because Donald Trump doesn't like it. And that is no exaggeration. The threat of the tax has been hanging around for years now, and the USA (including Joe Biden and the previous Democrat administration) has taken particular exception to it because, although the tax applies to any non-Canadian tech comany, a good 90% of them just happen to be American, and the US considers it unfair and discriminatory, even if it's not.
In the last few days, Trump seem to have belatedly discovered it and lashed out at Canada all over again, specifically ending all further trade negotiations with Canada until the planned tax is removed. Carney moved quickly to do just that, arguing that it was necessary in order to keep the negotiations going.
But many Canadians are incensed. The tax was expected to bring in about $2 billion, given its 2-year retroactive clause, and now we have nothing to show for it, no tax income and no leverage in the ongoing tariff negotiations. It does seem like we gave in to Trump's bully tactics with no advantage gained, and we are still back at square one with the tariff negotiations, but with one fewer bargaining chips.
As some of the comments express, what are we to do with our elbows now? Elbows up or elbows down or neither (just sit quietly and politely at the table)? Maybe Carey and his team know more about negotiations than we do - well, of course they do! - but what is the plan, Mark?