White House says Canadian PM ‘caved’ to Trump demand to scrap tech tax
The GuardianMonday, June 30, 2025 at 7:50:42 PM
The White House is claiming a win after Canada backed down from implementing a digital services tax targeting U.S. tech giants—a move the Trump administration framed as Canada "caving" to pressure. Canadian PM Mark Carney’s government abruptly scrapped the tax just before it was set to take effect, leading to revived trade talks. U.S. officials are spinning it as a surrender, while the details of what concessions (if any) were made remain unclear.
Editor’s Note: This isn’t just about taxes—it’s a power play. The U.S. has been aggressively opposing digital taxes globally, arguing they unfairly target American companies. Canada’s retreat suggests Washington still holds serious leverage in trade spats, even with close allies. But the tone ("caved") risks souring relations, and critics might see this as Canada folding under pressure rather than negotiating. Watch for ripple effects—other countries weighing similar taxes could take note.
— Curated via WP Now’s
