So, PM Carney "Caved" to Trump on the Digital Services Tax. How Big of a Deal Is It?

What does Canada really gain by backing down? Let’s dive into Canadian Prime Minister Mark Carney’s abrupt decision to cancel its long-planned digital services tax, minutes before implementation, after mounting pressure from the Trump administration. The digital services tax was projected to bring in billions from U.S. tech giants like Amazon and Meta—but with the stroke of a pen, it’s gone. Trump, in addition to other former US presidents, has historically fought against these kinds of levies, and his administration’s hardline tactics appear to have worked. But the big question remains: What did Canada get in return?In Episode 170 of The Bill Kelly Podcast, Bill unpacks the high-stakes trade dynamics and tariffs between Ottawa and Washington. With negotiations still underway and no clear outcome in sight, the government must now navigate a complex and unpredictable U.S. administration—one that seems to favour domination over cooperation. This episode takes a hard look at what’s been lost, what might still be gained, and why staying at the negotiating table may be Canada’s only viable strategy.This episode was recorded on July 1, 2025.Become a YouTube channel member to hear Bill’s stories and life lessons from 50+ years as a broadcast journalist in his members-only series, MORAL OF THE STORY: https://www.youtube.com/channel/UCeUbzckOLocFzNeY1D72iCA/joinDon’t forget to like, follow and subscribe across our channels! Thank you.Listen to The Bill Kelly Podcast everywhere: https://kite.link/the-bill-kelly-podcastYouTube: https://www.youtube.com/@TheBillKellyPodcast/featuredBlueSky: https://bsky.app/profile/thisisbillkelly.bsky.socialFacebook: https://facebook.com/TheBillKellyPodcastInstagram: https://www.instagram.com/thisisbillkelly/LinkedIn: https://www.linkedin.com/in/thisisbillkelly/TikTok: https://www.tiktok.com/@thebillkellypodcastSubStack: billkelly.substack.com/*Comment ‘likes’ on behalf of this channel are an acknowledgment of your comment, not necessarily an endorsement of its contents. Thanks for joining these critical discussions in critical times!CHAPTERS00:00 Introduction to the Digital Services Tax Debate02:48 The Implications of Cancelling the Tax06:12 Negotiation Dynamics with the U.S.09:02 Trust Issues in U.S.-Canada Relations11:53 Conclusion and Future OutlookFURTHER READINGTitle: Canada scraps tech tax to advance trade talks with Donald TrumpURL: https://www.ft.com/content/4cf98ada-7164-415d-95df-43609384a0e2Title: In tech tax 'cave,' Trump and Carney may have both gotten what they wantedURL: https://www.politico.com/news/2025/06/30/in-tech-tax-cave-trump-and-carney-may-have-both-gotten-what-they-wanted-00433980Title: US, Canada to resume trade talks after Ottawa drops digital taxURL: https://www.reuters.com/world/americas/canada-rescinds-digital-services-tax-bid-advance-trade-talks-with-us-2025-06-30/Title: US tech giants saved billions with Canada backing off its digital services taxURL: https://www.businessinsider.com/canada-digital-tax-cost-us-tech-giants-billions-each-year-2025-6HASHTAGS#News #Politics#BreakingNews#canadanews#canadianpolitics#CanadianNews#PoliticalNews#PoliticalCommentary#NewsUpdates#CurrentAffairs#NewsCommentary#PoliticalCommentary#TodayNews This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit billkelly.substack.com/subscribe