President Donald Trump is once again standing up for American businesses—this time by taking direct aim at Canada’s controversial Digital Services Tax.
On Truth Social, Trump didn’t mince words: all trade talks with Canada are now off the table until Ottawa scraps this unfair money grab. For Trump, it’s simple—no foreign government should get a free pass to siphon billions from thriving American companies just because people click, scroll, and shop online north of the border.
Canada’s new tax requires large global companies—primarily American tech giants and e-commerce platforms—to hand over 3% of the revenue they earn from Canadian users. Worse, the tax is retroactive, covering the entire period from January 2022, with payments commencing on June 30. That means American innovators like social media platforms, digital ad giants, and online marketplaces will be hit hardest, potentially paying up to $3 billion extra and risking thousands of US jobs.
Trump’s America First stance isn’t new here. When other countries attempted the same scheme, the US Trade Representative demonstrated that these digital taxes targeted US businesses for special punishment, violating fair trade principles and the USMCA trade deal that Canada itself had signed.
While Canada insists this tax is “fair,” the truth is clear: it’s a cash grab that punishes US success and lets Canadian companies off the hook. President Trump’s decisive move shows he won’t stand for backdoor tariffs masquerading as “digital fairness.”
Trump’s trade record is about protecting American workers, defending US innovation, and keeping global freeloaders in check. Canada’s tax might rake in dollars for Ottawa, but it could cost them far more if Trump’s trade hammer comes down. As always, America First means American jobs and businesses come first—no apologies.
