this post was submitted on 27 Jun 2025
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U.S. President Donald Trump said Friday he's terminating all trade discussions 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 said in a social media post.

He says he's pulling back from the bilateral trade discussions because Canada plans to move ahead with its digital services tax (DST), which requires web giants pay a special tax.

Set to take effect on June 30, the DST requires U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay a three per cent levy on revenue from Canadian users — a policy enacted by former prime minister Justin Trudeau's government that the Parliamentary Budget Office projects will bring in billions of dollars in revenue.

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[–] FelixCress@lemmy.world 43 points 19 hours ago (1 children)

Set to take effect on June 30, the DST requires U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay a three per cent levy on revenue from Canadian users

Good.

[–] something_random_tho@lemmy.world 21 points 18 hours ago (1 children)

It should be a lot higher, honestly. Encourage building Canadian services and using European services instead of relying on predatory American monopolies.

[–] FelixCress@lemmy.world 20 points 17 hours ago (1 children)

3% of revenue is a substantial number.

However, even better:

The tax, which will take effect on 30 June and be applied retroactively from 2022, will impact both domestic and international companies, meaning American giants Amazon, Google, Meta, Airbnb and Uber will have to start payments from Monday.

Source

[–] Exec@pawb.social 4 points 16 hours ago (1 children)

hah, imagine companies asking customers for taxes back from 2022

[–] FelixCress@lemmy.world 5 points 16 hours ago (1 children)

You know this is not how it works, yes?

[–] Exec@pawb.social 4 points 15 hours ago (1 children)

I mean it doesn't stop companies trying to comply with the law the worst way possible

[–] FelixCress@lemmy.world 4 points 15 hours ago (1 children)

It is a corporation tax, not the sales tax.

They are using the turnover to estimate tax liability because taxing profits achieved in a single country by digital multinationals is bordering on impossible (and too easy to avoid).

[–] davidagain@lemmy.world 2 points 4 hours ago (1 children)

Yup. Companies avoid paying taxes in one country by getting their divisions in other, lower tax countries to charge the one in the high tax country so much for intellectual property and branding etc that they make a loss in the high tax country, which in some countries entitles them to a tax rebate. It's insane.

[–] FelixCress@lemmy.world 3 points 3 hours ago

Which is why most of the multinationals should be taxed on turnover in a country taxing them.