Elbows Down: Canada Folds on the Digital Services Tax
Opinion
By Robert Loblaw
On June 30, 2025, Canada abandoned its digital services tax (DST), a flawed policy that had paralyzed trade negotiations with its largest partner. The move, forced by a looming July 21 G7 deadline, signals a shift from Mark Carney’s nationalist rhetoric to pragmatic diplomacy. With a trade war threatening 75% of its $600 billion export market, Canada has opted for a necessary reset. The elbows are down; it’s time to negotiate.
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