What does Canada really gain by backing down? Let’s dive into Canadian Prime Minister Mark Carney’s abrupt decision to cancel its long-planned digital services tax, minutes before implementation, after mounting pressure from the Trump administration. The digital services tax was projected to bring in billions from U.S. tech giants like Amazon and Meta—but with the stroke of a pen, it’s gone. Trump, in addition to other former US presidents, has historically fought against these kinds of levies, and his administration’s hardline tactics appear to have worked. But the big question remains: What did Canada get in return?
In Episode 170 of The Bill Kelly Podcast, Bill unpacks the high-stakes trade dynamics and tariffs between Ottawa and Washington. With negotiations still underway and no clear outcome in sight, the government must now navigate a complex and unpredictable U.S. administration—one that seems to favour domination over cooperation. This episode takes a hard look at what’s been lost, what might still be gained, and why staying at the negotiating table may be Canada’s only viable strategy.
This episode was recorded on July 1, 2025.
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CHAPTERS
00:00 Introduction to the Digital Services Tax Debate
02:48 The Implications of Cancelling the Tax
06:12 Negotiation Dynamics with the U.S.
09:02 Trust Issues in U.S.-Canada Relations
11:53 Conclusion and Future Outlook
FURTHER READING
Title: Canada scraps tech tax to advance trade talks with Donald Trump
URL: https://www.ft.com/content/4cf98ada-7164-415d-95df-43609384a0e2
Title: In tech tax 'cave,' Trump and Carney may have both gotten what they wanted
URL: https://www.politico.com/news/2025/06/30/in-tech-tax-cave-trump-and-carney-may-have-both-gotten-what-they-wanted-00433980
Title: US, Canada to resume trade talks after Ottawa drops digital tax
URL: https://www.reuters.com/world/americas/canada-rescinds-digital-services-tax-bid-advance-trade-talks-with-us-2025-06-30/
Title: US tech giants saved billions with Canada backing off its digital services tax
URL: https://www.businessinsider.com/canada-digital-tax-cost-us-tech-giants-billions-each-year-2025-6
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