Global Digital Tax Spat_ Canada vs. US

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Services Tax is sparking outrage in Washington. Get the full story on this $2 billion dispute.
Tech giants like Amazon and Google could face a $2 billion bill from Canada's new digital tax. Will this ignite a full-blown trade dispute with the U.S.?
From Trump's strong words to Canadian calls for negotiation, the Digital Services Tax is shaking up US-Canada relations. What does this mean for cross-border trade?
#USCanadaTradeWar #DigitalTaxDrama #TradeTensions

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00:00Good evening, we begin tonight with significant developments on the economic front concerning

00:04cross-border relations between the United States and Canada.

00:08Canada is moving forward with the implementation of its digital services tax, a measure that

00:13has already ignited a strong reaction from Washington.

00:16The tax, set at 3% on digital services revenue collected from Canadian users, is slated for

00:22its first payment this coming Monday.

00:24With revenue covered retroactively to 2022, this could result in an estimated dollar

00:302 billion bill for major technology companies, including giants like Amazon, Meta, and Google,

00:37affirming that the Canadian government will continue to engage in these complex negotiations

00:41with the United States in the best interests of Canadian workers and businesses.

00:47Earlier, Canadian Finance Minister Francois-Philippe Champagne had indicated that the tax could

00:52be a point of negotiation within broader U.S.-Canada trade discussions.

00:56This move has drawn immediate and sharp criticism from the United States.

01:00We will continue to monitor these developments closely.

01:03President Trump, in a post on Truth Social, explicitly called Canada's DST, a direct and

01:09blatant attack on our country.

01:11The Business Council of Canada released a statement warning that the implementation of a unilateral

01:15digital services tax could risk undermining Canada's economic relationship with its most

01:21important trading partner, the United States.

01:24Goldie Heider, President and CEO of the Council, suggested that Canada should propose an immediate

01:30elimination of the DST in exchange for an elimination of tariffs from the United States

01:35to get trade negotiations back on track.

01:38Furthermore, Doug Ford, the Premier of Ontario, Canada's largest province, has called for a pause

01:44in the taxes implementation, stating it is unfair to American partners in putting millions of

01:49Canadian jobs at risk.

01:51He further declared that his administration was terminating ALL discussions on trade with

01:55Canada effective immediately.

01:57This declaration was described as an extraordinary action by Frank McKenna, a former Canadian ambassador

02:03to the U.S., who noted it demonstrates how unpredictable and chaotic the United States is under

02:08President Trump.

02:09In response to President Trump's announcement, the Office of Canadian Prime Minister Mark Carney

02:14issued a brief statement.

02:16Within Canada, the DST has also raised concerns among business leaders and provincial officials.

02:22It's important to note that Canada's Finance Department has confirmed the DST will not affect

02:28the recent G7 agreement that led to the removal of the Section 899 revenge tax.

02:34This proposal from President Trump's tax bill, the ongoing tension surrounding the digital

02:39services tax, underscores the complexities of international trade and fiscal policies in

02:45the digital age.

02:46Money expansion.

02:47Money USD.

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