this post was submitted on 27 Jun 2025
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U.S. President Donald Trump said Friday he's terminating all trade discussions with Canada effective immediately.

"We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period," Trump said in a social media post.

He says he's pulling back from the bilateral trade discussions because Canada plans to move ahead with its digital services tax (DST), which requires web giants pay a special tax.

Set to take effect on June 30, the DST requires U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay a three per cent levy on revenue from Canadian users — a policy enacted by former prime minister Justin Trudeau's government that the Parliamentary Budget Office projects will bring in billions of dollars in revenue.

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[–] Exec@pawb.social 5 points 22 hours ago (1 children)

I mean it doesn't stop companies trying to comply with the law the worst way possible

[–] FelixCress@lemmy.world 4 points 21 hours ago (1 children)

It is a corporation tax, not the sales tax.

They are using the turnover to estimate tax liability because taxing profits achieved in a single country by digital multinationals is bordering on impossible (and too easy to avoid).

[–] davidagain@lemmy.world 2 points 11 hours ago (1 children)

Yup. Companies avoid paying taxes in one country by getting their divisions in other, lower tax countries to charge the one in the high tax country so much for intellectual property and branding etc that they make a loss in the high tax country, which in some countries entitles them to a tax rebate. It's insane.

[–] FelixCress@lemmy.world 3 points 9 hours ago

Which is why most of the multinationals should be taxed on turnover in a country taxing them.