Trump 'Terminating' U.S.-Canada Trade Talks Over Streaming Tax
'We have just been informed that Canada, a very difficult Country to TRADE with… 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 wrote Friday on his Truth Social site.
More from The Hollywood Reporter
Kneecap Shocks as Expected With Raucous Glastonbury Set: "The BBC Editor Is Going to Have Some Job"
Sony, Crunchyroll Drop First 'Demon Slayer' Trailer
Matty Healy Gives Mixed Message on Politics as The 1975 Kick Off Glastonbury Headline Sets
'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. 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,' Trump added.
Canada's digital services levy on American digital platforms was introduced last year and the federal finance department in Ottawa was set to start collecting the tax from foreign tech platforms as of June 30.
The bill for American tech players, which comes from a 3 percent levy imposed on their revenues from doing business in Canada and due on Monday, is retroactive to 2022 and could reach $2 billion annually.
With the major studios and film, TV and music streamers inextricably tied to the Canadian market, the digital services tax was always seen by Ottawa as likely part of a broader negotiations between the U.S. and Canada to set a new trade policy between the two major economic partners.
Compelling local American tech giants to put dollars into homegrown films, TV and music product via taxes on their revenues has long been sought by Canadian content creators. Trump ending talks with Canada follows the U.S. president and Canadian Prime Minister Mark Carney agreeing earlier this month after a G7 Summit in Alberta to pursue negotiations toward a new trade and security deal by mid-July.
Canadian politicians and lobby groups took Trump's latest social media posts and bargaining threats in their stride on Friday as just part of a likely roller coaster ride on the way to an eventual new and updated U.S.-Canada trade deal.
'We will continue to conduct these complex negotiations in the best interest of Canadians,' Carney told reporters in Ottawa. Candace Laing, CEO of the Canadian Chamber of Commerce, which has opposed the digital services tax, added: 'The tone and tenor of talks has improved in recent months, and we hope to see progress continue.'
Best of The Hollywood Reporter
How the Warner Brothers Got Their Film Business Started
Meet the World Builders: Hollywood's Top Physical Production Executives of 2023
Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
5 minutes ago
- Newsweek
US Immigration Budget Now Bigger Than Israel's Military Spending
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Senate has passed a bill making Immigration and Customs Enforcement (ICE) the U.S.'s largest interior law enforcement agency with funding for Donald Trump's immigration enforcement agenda higher than most of the world's militaries, including Israel's. Pending its passage in the House of Representatives, Trump's bill could mean a massive increase in ICE funding as part of an immigration enforcement agenda worth $150 billion over four years. This image from June 12, 2025 shows U.S. Immigration and Customs Enforcement (ICE) agents at Delaney Hall, a migrant detention facility, in Newark, New Jersey. This image from June 12, 2025 shows U.S. Immigration and Customs Enforcement (ICE) agents at Delaney Hall, a migrant detention facility, in Newark, New It Matters If passed by Congress, Trump's 1000-page bill could reshape the U.S. immigration system with a significant increase in funding for expanding law enforcement and detention network while increasing costs to legally immigrate to the U.S. What To Know A revised version of Trump's bill was narrowly voted through the Senate on Tuesday. The estimated price tag of the legislation is around $150 billion between now and 2029—an annual average of $37.5 billion, which is higher than the military expenditure of all but 15 countries. This figure is more than the annual military budget of Italy, which at $30.8 billion, is the world's 16th highest defense spender for this year according to tracker Global Fire Power. It is also higher than military spending for Israel, ($30 billion), the Netherlands ($27 billion) and Brazil ($26.1 billion). Different news outlets have broken down in different ways. The National Immigration Law Center said that ICE's detention budget would increase to $45 billion to build immigration jails for single adults and families, a price tag 13 times more than ICE's 2024 detention budget. The bill also allocates $29.9 billion in additional funding for ICE activities, including hiring new agents and securing transportation contracts to move migrants between detention centers and facilitate deportations, according to Migrant Insider. Meanwhile an assessment by Detention Watch Network said the bill set aside $59 billion to militarize the border which included wall construction, CBP agents and vehicles, and border surveillance technology. It also said that there was $10 billion for grants to reimburse states who enact anti-immigrant policies and another $1 billion to the Department of Defense to deploy military personnel to the border and to detain migrants. What People Are Saying House Speaker Mike Johnson wrote on X that the bill "provides the ESSENTIAL funding needed to secure our nation's borders." Silky Shah, Executive Director of Detention Watch Network said in a statement: "This bill skyrockets ICE's budget to never before seen funding levels and will make it the largest law enforcement agency in the country." "ICE will now have 13 times its current fiscal budget for detention, which is already operating at a historic high, on top of the funding in ICE's annual budget that Congress sets each year." Adam Isacson, a researcher with human rights advocacy organization WOLA per the AP, "One thing about this bill, these sections are super no real specificity in the bill about how it's going to be spent." What Happens Next Trump's bill returns to the House of Representatives on Wednesday after a revised version was narrowly voted through the Senate on Tuesday. The president has set Congress a loose deadline of July 4 but further opposition is expected.
Chicago Tribune
12 minutes ago
- Chicago Tribune
President Donald Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not
WASHINGTON — President Donald Trump keeps saying that Republicans' mega tax and spending cut legislation will eliminate taxes on federal Social Security benefits. It does not. At best, Trump's 'no tax on Social Security' claim exaggerates the benefits to seniors if either the House or Senate-passed proposals is signed into law. Here's a look at Trump's recent statements, and what the proposals would — or would not — do. Trump repeatedly told voters during his 2024 campaign that he would eliminate taxes on Social Security. As his massive legislative package has moved through Congress, the Republican president has claimed that's what the bill would do. Trump said on a recent appearance on Fox News' 'Sunday Morning Futures' that the bill includes 'no tax on tips, no tax on Social Security, no tax on overtime.' But instead of eliminating the tax, the Senate and House have each passed their own versions of a temporary tax deduction for seniors aged 65 and over, which applies to all income — not just Social Security. And it turns out not all Social Security beneficiaries will be able to claim the deduction. Those who won't be able to do so include the lowest-income seniors who already don't pay taxes on Social Security, those who choose to claim their benefits before they reach age 65 and those above a defined income threshold. The Senate proposal includes a temporary $6,000 deduction for seniors over the age of 65, contrasted with the House proposal, which includes a temporary deduction of $4,000. The Senate proposal approved Tuesday would eliminate Social Security tax liability for seniors with adjusted gross incomes of $75,000 or less or $150,000 if filing as a married couple. If passed into law, the tax deduction would last four years, from 2025 to 2029. The deductions phase out as income increases. Touting a new Council of Economic Advisers analysis, the White House said Tuesday that '88% of all seniors who receive Social Security — will pay NO TAX on their Social Security benefits,' going on to say that the Senate proposal's $6,000 senior deduction 'is estimated to benefit 33.9 million seniors, including seniors not claiming Social Security. The deduction yields an average increase in after-tax income of $670 per senior who benefits from it.' Garrett Watson, director of policy analysis at the Tax Foundation think tank, said conflating the tax deduction with a claim that there will be no tax on Social Security could end up confusing and angering a lot of seniors who will expect to not pay taxes on their Social Security benefits. 'While the deduction does provide some relief for seniors, it's far from completely repealing the tax on their benefits,' Watson said. The cost of actually eliminating the tax on Social Security would have massive impacts on the economy. University of Pennsylvania's Penn Wharton Budget Model estimates that eliminating income taxes on Social Security benefits 'would reduce revenues by $1.5 trillion over 10 years and increase federal debt by 7 percent by 2054″ and speed up the projected depletion date of the Social Security Trust Fund from 2034 to 2032. Discussions over taxes on Social Security are just part of the overall bill, which is estimated in its Senate version to increase federal deficits over the next 10 years by nearly $3.3 trillion from 2025 to 2034, according to the Congressional Budget Office. Administration officials have said the cost of the tax bill would be offset by tariff income. Recently, the CBO separately estimated that Trump's sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall.
Yahoo
14 minutes ago
- Yahoo
Trump's 35% Tariff Threat Could Shake Japan's Economy--And Unleash a Market Buying Opportunity
Tensions are climbing as Donald Trump dials up pressure on Japan with a threat of tariffs reaching as high as 35%a move that's sending ripples through markets and forcing investors to weigh the odds of a worst-case scenario. The Nikkei 225 slipped 0.6% to 39,762 on Wednesday, and the yen softened to 143.88 per dollar, as traders began pricing in the risk of a breakdown in negotiations ahead of the July 9 deadline. Japan's auto sector, which makes up nearly 10% of its GDP, stands to take a direct hit if talks fail. While Trump's track record shows a tendency for brinkmanship before last-minute deals, market participants are increasingly hedging for volatility in the short term. Warning! GuruFocus has detected 3 Warning Sign with TM. Prime Minister Shigeru Ishiba has pushed back on one-sided concessions, arguing Japan already plays a unique role in the U.S. economy as its largest global investor and a major contributor to American jobs. But several voices in Tokyo are now urging a rethink. We need to work on Trump himself, said former Japanese ambassador Ichiro Fujisaki, signaling that current efforts may not be enough. Analysts are also pointing to Japan's crucial role in the semiconductor supply chain where it supplies about half the materials needed as one of the few pressure points still available to Tokyo. For investors, the calculus gets trickier. Bloomberg Economics estimates a full tariff implementation could shave 1.2% off Japan's GDP double the hit expected under the current 10% levy. That kind of macro pressure could drag the Nikkei closer to the 38,000 mark. Still, some strategists believe a no-deal selloff may offer a tactical entry point. There's a lot more risk than the market is pricing in, said UBP's Zuhair Khan. Others, like Rayliant's Phillip Wool, see the standoff as part political theater, part dealmaking playbook. If that's true, names like Toyota (NYSE:TM), Sony (NYSE:SONY), and Nippon Steel may face short-term heat but also sit atop the buy list once the dust settles. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
