Tariff Tantrum: Trump Targets Canada’s Digital Tax
President Donald Trump recently signed a memo aimed at retaliating against nations that tax American tech giants, with Canada’s digital services tax at the forefront. The 3% levy on revenue earned is applied domestically to large technology companies such as Apple, Amazon, and Google.
Trump’s memo does not mention Canada by name in isolation—over 30 countries, including France, India, and the U.K., have adopted or plan to implement digital taxes that the US deems unfair to its Silicon Valley heavyweights. However, Canada stands out because of its close economic ties and existing trade deals with the United States.
Canada initially introduced the DST last year, claiming that multinational tech firms often escape meaningful taxation because they do not maintain significant physical operations within the country. Officials touted the revenue potential—estimated at around $1 billion—and insisted the move was about fairness and closing loopholes.
Critics both within and outside Canada wonder if collecting this “fair share” is worth risking a tariff war with the US.
The latest comes from the same vein the Trump administration is arguing its “reciprocal tariffs,” matching the levies trading partners put on the US. The White House considers Canada’s supply management system for dairy and poultry to be another sore point, one that Trump has already publicly lambasted.
“For many years, the U.S. has been treated unfairly by other Countries, both friend and foe. This System will immediately bring Fairness and Prosperity back,” Trump explains as he aims for reciprocal tariffs.
As the deadline for possible new tariffs approaches, many Canadians worry that the White House could announce duties of up to 25%—and in extreme scenarios, 100%—on certain imports. There is also talk of using other countries like Russia to supply materials, such as aluminum, to US industries at favorable rates if negotiations with Canada falter.
Information for this story was found via Samsung News and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Fuck Trump!