Trump appears overwhelmed as opposition grows and support withers
Rachel Maddow looks at the powerful movement building against Donald Trump as his time in office becomes increasingly shambolic and he becomes more of a laughing stock in front of the whole world.
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Yahoo
33 minutes ago
- Yahoo
Canada rescinds digital services tax to resume negotiations with U.S.
OTTAWA — Finance Minister François-Philippe Champagne says Canada is rescinding the digital services tax and will resume trade negotiations with the United States. The announcement was made in a statement following a phone call between Prime Minister Mark Carney and U.S. President Donald Trump. The move comes three days after Trump said he was terminating all trade discussions with Canada because of the tax. Champagne's statement says the tax is being rescinded in anticipation of those trade talks resuming and Canada is still aiming for a deal by July 21 -- the deadline set by Carney and Trump at the G7 summit. A spokeswoman for Carney says Champagne also spoke today with U.S. Treasury Secretary Scott Bessent. The first payment under the digital services tax was to be submitted on Monday, forcing tech giants such as Amazon, Google and Meta to pay a three per cent levy on revenue from their Canadian users. This report by The Canadian Press was first published on June 29, 2025. The Canadian Press
New York Times
39 minutes ago
- New York Times
Canada Will Scrap Tax That Prompted Trump to Suspend Trade Talks
Canada's government announced on Sunday night that it would cancel a tax on American technology companies that led President Trump to suspend trade talks between the two countries, handing an important victory to Mr. Trump. Prime Minister Mark Carney discussed the decision to scrap Canada's digital services tax with Mr. Trump on Sunday, Mr. Carney's office said. In a sign that trade talks were resuming, Canada's finance minister, François-Philippe Champagne, spoke with the U.S. Trade Representative, Jamieson Greer, on Sunday, according to Mr. Carney's office. The tax, which had been due to take effect on Monday, became the latest flashpoint in difficult negotiations between the United States and Canada on Friday, when Mr. Trump said the talks were off. On social media, Mr. Trump called the levy a 'blatant attack' and said he would inform Canada within a week about the duties 'they will be paying to do business with the United States of America.' Forty-eight hours later, the Canadian government folded, announcing it would not go ahead with the tax. Technically, the cancellation of the tax needs to be approved in legislation, so until that time, the government is suspending its collection. Politically, canceling the tax should be a simple matter for the government. Canada's 3 percent digital services tax has been in place since last year, but the first payments were only due beginning on Monday. Because the tax is retroactive, American companies were preparing to turn over roughly $2.7 billion to the Canadian government, according to a trade group for large American tech companies. U.S. officials from both parties have long chafed at taxes like the one Canada has imposed, calling them unfairly targeted at services provided by American companies like Google, Apple and Amazon. This is a developing story. Check back for updates.
Newsweek
40 minutes ago
- Newsweek
Canada and US Trade Talks Resume After Digital Tax Reversal
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. Canada and the United States have resumed trade negotiations after Canadian Prime Minister Mark Carney agreed to rescind the country's digital services tax on U.S. technology companies. The development follows President Donald Trump's announcement on Friday that he was suspending all trade talks with Canada "effective immediately" over the tax policy. Why It Matters Trump's Friday announcement followed Canada's confirmation that it would proceed with its digital services tax on technology giants, most of which are U.S.-based, despite a previous G7 agreement where the Trump administration had agreed to drop a retaliatory tax proposal from congressional consideration. Canada's quick reversal signals the high stakes involved in maintaining trade relationships with the United States, particularly given the countries' deeply integrated economies. What To Know Carney's office confirmed on Sunday that both leaders have agreed to restart negotiations after Canada committed to abandoning the 3 percent levy targeting major U.S. tech giants including Amazon, Google, Meta, Uber, and Airbnb. The tax was scheduled to take effect Monday and would have applied retroactively, creating an estimated $2 billion bill for American companies. The conflict escalated rapidly after Canada's Finance Department confirmed Friday that companies would still be required to make their first digital tax payments Monday, despite ongoing negotiations. The tax targeted revenue generated from Canadian users rather than corporate profits, making it particularly burdensome for technology companies operating internationally. Trump's response was immediate and severe. He announced the suspension of all trade discussions "effective immediately" and threatened to impose new tariffs on Canadian goods within seven days. The president criticized Canada as "a very difficult Country to TRADE with" and described the digital tax as "a direct and blatant attack on our Country." The dispute has unfolded against already strained U.S.-Canada relations. Since taking office in January, Trump has repeatedly criticized Canada and suggested it should become the 51st U.S. state. These tensions contributed to the political environment that led to Justin Trudeau's resignation and Mark Carney's subsequent election on an anti-Trump platform. Canada's decision to rescind the tax came "in anticipation" of reaching a broader trade agreement, according to government officials. What People Are Saying Canadian Prime Minister Mark Carney said Friday: Canada will "continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation." President Donald Trump previously said in the Oval Office that he expected Canada to lift the digital services tax: "Economically we have such power over Canada. We'd rather not use it. It's not going to work out well for Canada. They were foolish to do it." Canadian Prime Minister Mark Carney (R) greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders' Summit on June 16, 2025 in Kananaskis, Alberta. Canada is hosting this year's meeting... Canadian Prime Minister Mark Carney (R) greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders' Summit on June 16, 2025 in Kananaskis, Alberta. Canada is hosting this year's meeting of the world's seven largest economies. MoreWhat Happens Next With negotiations resuming, both countries will likely focus on addressing broader trade issues beyond the digital services tax. The Trump administration has indicated expectations for additional Canadian concessions, particularly regarding agricultural tariffs that have been a longstanding source of friction. Reporting from the Associated Press contributed to this article.
