Digital services tax retreat risks showing ‘Canada will fold’ in Trump trade talks, warn experts

The DST has long been a sticking point in Canada-U.S. relations, after the Liberals tried to close what they saw as a loophole for American firms raking in millions of dollars in Canada without paying taxes.

Canada-U.S. Trade Minister Dominic LeBlanc, left, Industry Minister Mélanie Joly, Prime Minister Mark Carney and Finance Minister François-Philippe Champagne at a press conference in the West Block on June 19, 2025. Carney has defended eliminating the DST, saying negotiations had restarted with the U.S. as of June 30.The Hill Times photograph by Andrew Meade

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BY MARLO GLASS

July 3, 2025

The Liberal government's 11th-hour withdrawal of a controversial tax legislation, that was...

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