Canada’s Digital Tax Just Lit A Fire Under Trump – What’s Behind The Blowup? | World News
New Delhi: US President Donald Trump suddenly frozen with Canada this week because he plans to start collecting a digital tax from major technology companies, including Ottawa, Google, Amazon, Meta and Uber. Trump did not retreat. In an article on the social platform, the truth described the tax as ı directly and open attacks on our country ”.
Authorized, the United States will respond with new tariffs on Canada goods within days, he said.
The movement did not come out of any place. The Canadian Law, which was quietly in June 2024, demands a 3% tax for digital service revenues obtained from Canadian users. It applies to technology companies that earn more than $ 820 million globally in Canada and earn more than $ 14.7 million.
Here is the really growing eyebrows-not only forward-looking, but also back to January 2022.
This means that US companies can be hit on approximately $ 2 billion bills. Trump’s response was immediately and noisy. “We terminate all debates about trade with Canada. They will know new tariffs they will pay to do business with the United States within seven days,” he wrote.
Trump doubled in the White House. “We hold all the cards. Canada made a stupid movement,” he said.
The United States is the best trade partner in Canada. More than 80% of Canadian exports are going to the south of the border. In 2024, this trade relationship was over $ 762 billion. Any deterioration, especially in sectors such as energy, minerals and cars, can leave a notch on both sides.
Canadian Prime Minister Mark Carney, who took office only three months ago, is now caught between two fires. At home, business leaders want them to leave the tax to avoid economic spread. Abroad, Trump’s threats are growing loudly.
Still, Carney didn’t blink. His office said on Friday, Canada, “Canadian workers and businesses will continue to make negotiations,” he said.
The tax has been on the pipeline since 2019. However, Otawa delayed practice through the OECD, hoping for a global agreement. This agreement has never arrived. Thus, Canada continued.
Washington sees it differently. MPs on both sides warned that this tax would open the door to retaliation measures. Twenty -one member of the Congress recently called on Trump to push back.
The US president is doing exactly exactly. The team says that a section 301 investigation continues to evaluate how the tax is damaging American companies. Such probes can lead to punishing actions such as Trump’s previously used against China and France.
Canada is not alone in targeting Big Tech’s overseas earnings. France, the United Kingdom, India, Italy, Austria and even Indonesian taxes have revealed similar taxes. Most of them receive 2% to 5%. Some of them reacted from Washington, like France’s 3% tax.
The European Union (EU) follows that this drama occurs with discomfort. Meetings with the United States are approaching the deadline for July 9. If no agreement is reached, Trump said he would hit European exports – especially automobiles and steel – up to 50%.
The EU has prepared a list of 111 billion dollars of retaliation tariffs.
In Otawa, business leaders say that Canada is playing a dangerous game. The Canada Business Council warned that this week is facing a major risk of the new tax. “Canada should immediately recommend quit DST in exchange for removing US tariffs,” he said.
However, Carney seems to be determined to remain connected to the road. The first payments will be made on Monday. And unless something changes soon, a trade struggle can be the next.
