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Welcome to Bay Street Edition, our weekly newsletter devoted to what's happening in Canadian finance, covering strategy, deals, people moves and economics.
I'm Christine Dobby, Bloomberg's Toronto-based banking reporter, and you'll find me in your inbox every Friday. This week, we're talking about where you work your 9-5, Wealthsimple's product launches and another potential big deal from GFL. Plus: the Canadian connections to SmartLess Mobile.
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44 minutes ago
- Yahoo
Trump Cuts Off Trade Talks With Canada Over Digital Services Tax
President Donald Trump on Friday said he was 'terminating ALL discussions on Trade' with Canada over the country's new digital services tax that aims to collect billions of dollars from American tech giants like Meta and Amazon, starting on Monday. 'We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,' Trump posted on Truth Social. The president then said he was canceling all trade discussions with America's northern neighbor due to the 'egregious Tax.' He added '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,' before adding his trademark sign-off, 'Thank you for your attention to this matter!' Canada's DST is a 3% tax on large tech companies with more than about $800 million in annual revenue. It targets companies involved in social media services and online advertising, which puts tech giants like Meta, the parent company of Facebook and Instagram, Amazon, and Google-parent Alphabet on the hook for payments. The first tax payment is due on Monday, and is retroactive to sales made since the start of 2022. The Wall Street Journal estimated that initial payment would be around $3 billion for the collective U.S. firms being taxed. Upon the president's post on Friday, Canadian Prime Minister Mark Carney's office shared a brief response. 'The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses,' his office said. The post Trump Cuts Off Trade Talks With Canada Over Digital Services Tax appeared first on TheWrap. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
44 minutes ago
- Yahoo
What is Canada's digital services tax — and why does Trump dislike it so much?
In the last few weeks and months, U.S. President Donald Trump has given a number of rationales for escalating the trade dispute between Canada and the United States. On Friday, he zeroed in on Canada's digital services tax — a new levy expected to cost the largest American tech giants billions of dollars in the coming years after it kicks in on Monday. International trade lawyer William Pellerin was only shocked the U.S. president didn't bring it up sooner. "It's actually quite surprising that it took them this long to make a big stink about this issue," Pellerin, who works for McMillan LLP, told CBC News Network on Friday. "If the U.S. was going to take a run at this and really has had a beef with Canada on this issue for a really long time, they really had no choice but to escalate that issue at the last minute now." Here's what you need to know about the tax, which has been a thorn in the side of the Canada-U.S. relationship for years. Canada's digital services tax (DST) affects mega companies that offer digital services — like online advertising or shopping — and earn more than $20 million in revenue from Canadian sources. Giant companies like Amazon, Apple, Airbnb, Google, Meta and Uber will be taxed three per cent on the money they make from Canadian users and customers. The levy has been in place since last year, but the first payments are due starting Monday. It's retroactive to 2022, so companies will end up with a $2-billion US bill due by the end of July. Revenue is one big benefit. The Parliamentary Budget Office estimated last year that the tax would bring in more than $7 billion over five years. The Liberals first promised the tax during the federal election in 2019 under former prime minister Justin Trudeau, but it was delayed for years because a number of other nations wanted to work together on one, overarching digital taxation plan that could be applied in multiple countries. As the delays dragged on, Canada went ahead with its own tax plan. Aside from revenue, Ottawa has pitched the DST as a way to bring the tax code up to date and capture revenues earned in Canada by firms located abroad. The United States has been hostile to the tax from the beginning because it largely affects American tech giants. Officials have argued the tax discriminates against American companies and Congress, notoriously divided between Democrats and Republicans, found a moment of common ground in criticizing Canada's plan. The Computer & Communications Industry Association has estimated U.S. companies could pay as much as $1 billion a year in tax if the measure remains on the books. A number of industry experts — from lawyers to cross-border groups and commerce associations — have warned for years that the tax would strain the relationship between Canada and the U.S., with one going so far as to predict in 2023 that the tax alone would be to blame for a trade war. WATCH | Trump says he's ending talks with Canada over DST: Canadian and U.S. business groups, organizations representing U.S. tech giants and American lawmakers all signed letters in recent weeks calling for the tax to be eliminated or paused. But Finance Minister François-Philippe Champagne said the legislation was passed by Parliament, and Canada would be "going ahead" with the tax. Pellerin, the international trade lawyer, said he suspects the federal government will avoid changing its plan because it's taken a strategy of avoiding knee-jerk reactions to Trump's negotiation tactics. "The Trump administration is not known for negotiating quietly in the back rooms or in the hallways of power … so I don't think this is unexpected," he said. Trump says he's pulling back from the bilateral trade discussions because Canada plans to move ahead with its DST on Monday, a move he described online as "a direct and blatant attack on our country." The move put the 30-day deadline to reach an agreement in the trade dispute into doubt. The Biden administration also opposed the tax, but tried to resolve the issue differently: It asked Canada for dispute settlement consultations under the Canada-United States-Mexico-Agreement (CUSMA) last August. That consultation period ended in November without the Biden administration taking the case to the next step, but there is no time limit on when the U.S. could pick that plan back up — so the CUSMA route is still available to the current administration if Trump wanted to move away from his current tactic. Yes. France, Italy, Spain and the United Kingdom all have tax regimes in place, to name a few.
Yahoo
an hour ago
- Yahoo
DHL Express Canada workers ratify new agreement, move to end strike and lockout
TORONTO — Canada's largest private sector union says a three-week lockout and strike at DHL Express Canada is due to end because workers ratified a new agreement. Unifor says the four-year agreement reached with the delivery company was ratified with 72 per cent support from members. It includes a 15.75 per cent wage hike, pension increases for hourly workers and a new pension for owner-operators. The agreement also features increases to short- and long-term disability payments, new mental-health benefits, a rise in severance and updated language around artificial intelligence, robotics and work-from-home policies. The agreement impacts more than 2,100 DHL Express Canada employees who work as truck drivers, couriers and in warehouse and clerical roles. They were locked out after midnight on June 8 and went on strike hours later. Unifor now says DHL workers will return to work after the ratification but offered no definite timeline. This report by The Canadian Press was first published June 28, 2025. The Canadian Press
