After months of stubborn posturing, Canada’s government has finally blinked. In a move that underscores just how much leverage the United States wields under President Donald Trump’s leadership, Ottawa has withdrawn its controversial digital services tax — a tax that would have gouged American tech giants for billions and threatened to send the cost of digital services for ordinary Canadians through the roof. The timing is no accident: the first payment for this tax was set for Monday, but with Trump’s administration slamming the brakes on trade negotiations, Canada had little choice but to cave.
This tax wasn’t some benign revenue measure. It was a 3% levy on the digital services revenue that big tech companies earned from Canadian users, targeting firms with more than C$20 million ($14.6 million) in annual revenue from Canada. The goal was simple: squeeze American companies for cash to fund Ottawa’s own spending priorities.
President Trump’s response was swift and decisive. When Canada refused to drop the tax, he ended all trade negotiations. Treasury Secretary Scott Bessent wasn’t surprised — Trump’s team saw this coming — but they made it clear there would be no progress until Ottawa backed down. The usual suspects predicted disaster.
Except that didn’t happen. Canadian business leaders and opposition politicians, recognizing the economic peril, piled on the pressure, urging Prime Minister Mark Carney’s government to scrap the tax before it could do lasting damage.
"Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” Finance Minister Francois-Philippe Champagne said Sunday.
The first payment for Canada’s digital tax was supposed to be due Monday. The tax, which was passed into law in last year, was meant to charge 3% of the digital services revenue a firm makes from Canadian users above C$20 million ($14.6 million) in a calendar year. It would have cost large technology companies billions of dollars.
Following Trump’s post, Canadian business groups and politicians reiterated their calls for the Carney government to drop the tax. Opponents had long argued the levy would increase the cost of digital services and invite retaliation from the US.
Trump won't let anyone push America around while he's president. If our trading partners want access to the world’s largest economy, they will play by fair rules. Protectionist schemes like Canada’s digital tax, designed to punish U.S. innovation and pad foreign treasuries, will not stand. Trump’s willingness to walk away from the table, to put American interests first, is exactly why the U.S. is back on top.
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For years, global elites and their media mouthpieces insisted that Trump’s approach would spark chaos and isolation. Instead, we’re seeing the opposite: a president who gets results, who commands respect, and who isn’t afraid to use America’s economic muscle to protect American workers and businesses. Canada’s retreat is proof positive that strength works — and that when America leads, the world follows.
This episode is just the latest in a string of wins for Trump: he took out Iran’s nuclear program, brokered an Iran-Israel ceasefire, hammered out a peace deal between Rwanda and the Democratic Republic of the Congo, and brought real relief at home — lower grocery bills, lower inflation, and gas prices at their lowest point in four years. The economy is booming, and America’s allies are finally stepping up, with NATO members committing to more defense spending. Oh, and the Supreme Court put a stop to lower courts abusing nationwide injunctions.
The wins keep stacking up, and the message to our allies and adversaries alike is simple: under President Trump, the days of taking America for a ride are over.
Canada’s surrender proves it: American resolve gets results, and the world takes notice. The media won’t give Trump credit, but PJ Media will. We’re dedicated to bringing you the facts about victories like these—stories that matter, stories that inspire. Become a PJ Media VIP today with promo code FIGHT for 60% off. Enjoy exclusive access, ad-free browsing, and access to the comment threads.
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