On the day before Canada Day, I doubt I am the only one to feel utterly outraged this morning. Our government, which has gone to great measures to stoke our Canadian pride, has betrayed all of us. It has succumbed to Trump's threats and rescinded the Digital Services Tax.
The announcement came following a phone call between Prime Minister Mark Carney and U.S. President Donald Trump, and just hours before the first payment under the tax was going to come due for major tech companies like Amazon and Google.
On Friday Trump announced on his social media platform Truth Social he was terminating all trade discussions with Canada because of the tax.
The tax, which was set to be collected starting today, was unpopular with the U.S., and Trump had one of his many tantrums. In rescinding it, as opposed to possibly suspending it, Canada has shown itself to be at Trump's mercy.
Daniel Béland, a politics professor at McGill University in Montreal, called Carney’s retreat a “clear victory” for Trump.
“At some point this move might have become necessary in the context of Canada-US trade negotiations themselves but Prime Minister Carney acted now to appease President Trump and have him agree to simply resume these negotiations, which is a clear victory for both the White House and big tech,” Béland said.
He said it makes Carney look vulnerable to President Trump’s outbursts.
“President Trump forced PM Carney to do exactly what big tech wanted. U.S. tech executives will be very happy with this outcome,” Béland said.
Notably, the U.S. finalized a trade deal with the U.K last month, despite the fact that country has a 2% DST.
One can only expect more American abuse and craven Canadian submission ahead.
In Sunday’s interview [on Fox], Mr. Trump also criticized Canada’s supply-management system, which strictly controls imports of eggs, dairy and poultry to protect domestic producers.
I don't know what I will be doing tomorrow on Canada Day. One thing I won't be doing is celebrating Canadian 'pride'.
UPDATED: If, despite the above, your pride is still intact, try this one on for size:
Karoline Leavitt, Mr. Trump’s chief spokeswoman, told a press briefing Monday that Mr. Carney telephoned Mr. Trump to inform him that Ottawa would be cancelling the tax, two days after Mr. Trump threatened to walk away from trade talks and impose retaliatory tariffs over the levy, and one day before the first payment of the tax was meant to be collected.
“It’s very simple: Prime Minister Carney and Canada caved to President Trump and the United States of America,” Ms. Leavitt said. “The President made his position quite clear to the Prime Minister and the Prime Minister called the President last night to let the President know that he would be dropping that tax.”
And from the horse's mouth:
I imagine that Carney is trying to 'negotiate' in a rational way with Trumph but how do you even have a conversation with a totally irrational want to be dictator?
ReplyDeleteRural
Precisely, Rural. I fear this is the first of many capitulations.
DeleteThe Carney honeymoon is over.
DeleteAbsolutely, Toby. I will be happy to rescind my disaffection if something really good comes out of this base attempt at appeasement, but history tells me not to hold my breath.
DeleteI suspect the thought process is, get some kind of deal in place with the US, but spend a f-ton more time on developing other markets as quickly as possible. It is a bitter pill. I don't like it, but I am pleased with getting into the Europe defense pact so we are not so tied to the US.
ReplyDeleteThe European orientation is good, Anon, but I'm not sure about how much less we will be tied to the U.S. After. all, the head of the Canadian Armed Forces is advocating the purchase of a whole fleet of F-35s, despite the huge current cost overruns for the current batch, and the fact that the U.S. will be in full control of the software.
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