Trump Influences Canada to Abandon Digital Services Tax

Prime Minister Mark Carney rescinded Canada’s three percent digital services tax (DST) in June 2025 after President Trump threatened to halt trade talks, aiming to revive stalled negotiations. Despite the repeal, experts like Adam Michel from the Cato Institute argue that DSTs harm economies and consumer prices, while the OECD’s Pillar One approach to global taxation undermines national sovereignty and creates instability in corporate tax systems. Michel believes DSTs, although flawed, are preferable to the potential consequences of the OECD’s proposal.

Want More Context? 🔎