US-Canada digital services tax negotiations called ‘a pretty big deal and a real victory for Trump’

On Sunday, Canada announced that it will be rescinding the digital service tax on US tech firms, which may put pressure on other countries to follow in their footsteps.

The decision came as America’s neighbor to the north aims to bring President Donald Trump’s administration back to the negotiation table and avoid increasing tariffs. And it appears the move was a success, as the White House indicated that discussions between the two countries will continue. However, some are worried that other countries may now feel pressured to follow in their footsteps. The Hill reports that  “experts” are concerned that this success may have emboldened Trump into thinking that he can “bully or cajole” other countries in the future.

“Going forward, I think the fact that Trump managed to bully or cajole Canada into dropping its [digital services tax] means that this will be a big item that he insists on in talks with Europe and any countries in all these trade negotiations,” said Peterson Institute for International Economics nonresident senior fellow Gary Hufbauer.

“I see this as a harbinger of a more general repeal of digital services taxes,” he noted, saying that Canada’s move is a “pretty big deal and a real victory for Trump.”

“Since taking office for a second time, Trump has repeatedly criticized taxes and fines on U.S. tech firms. He slammed the European Union (EU) in January, alleging that the bloc’s hefty fines against American companies amount to a ‘form of taxation,’” The Hill wrote.

In September, the top court in the EU ruled that Apple owed over $14 billion in back taxes to the country of Ireland. The same court upheld a previous $2.7 billion fine against Google that had been levied by the country’s antitrust regulators.

“Meta, the parent company of Facebook and Instagram, was also fined about $840 million for antitrust violations in November. The social media giant was hit with another $228 million fine in April, alongside Apple, which faced a $570 million penalty,” the outlet reported.

“They’re suing Google, they’re suing Facebook, they’re suing all of these companies, and they’re taking billions of dollars out of American companies,” Trump said in March.

Writer/Columnist

Sierra Marlee is a millennial whose hunger for the truth in a world of fake news has led her to BizPac Review.

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