UPDATE-June 30-From below-(“The digital tax, while important, isn’t on the same level as autos, steel, or critical trade infrastructure. That makes it a useful card, not a dealbreaker, but a chip worth playing.”) It looks like PM Carney played his card last night!
This one’s for my fellow Canadians, and for my American friends peeking over the fence to see what this tech tax is all about.“This Tuesday, July 1st, marks Canada’s 158th birthday. And while the fireworks and face paint will be out in full force, I’ll be keeping it simple. I’ll be sitting with my own gratitude. Gratitude for having had the privilege, not the luxury, the privilege, of visiting or living in every province and territory in this country. Not just flying over, not just ticking a box, but really being there. From ferry terminals in Newfoundland to frozen airstrips in Nunavut, to the shores of Vancouver Island and yes, even downtown Winnipeg in February. That’s not a brag. That’s a love story.
Because once you’ve seen this country, really seen it, you don’t just understand Canada. You feel it in your bones. And maybe that’s why I take it personally when a human thundercloud from the south decides to try and muscle us around on the eve of our national holiday.
Enter Donald J. Trump, stage far-right, with a Friday afternoon meltdown that absolutely no one asked for. In his infinite insecurity, Trump announced, from his personal echo chamber, Truth Social, that he is suspending all trade negotiations with Canada. Why? Because Canada is implementing a Digital Services Tax.
Let’s be clear: this isn’t a tariff. It’s a 3% tax on massive digital platforms such as Google, Meta, Amazon, and X. Any digital platform provider that makes more than $20 million annually from Canadian users is subject to the tax. The law has been in the works for years, passed through Parliament, and delayed only while countries debated a global approach. First payments are due June 30th, and it’s retroactive to 2022. So no, this wasn’t sudden. It was scheduled.
Why the outburst now? Because someone in Northern California, maybe Zuckerberg, maybe another tech billionaire who isn’t used to paying tax anywhere, picked up the phone. And Trump, never one to miss a cue from a donor, did what he does best: threw a fit. Probably exacerbated because he’s stuck in D.C. this weekend trying to pass his ‘Big Beautiful Bill’ with no golf cart in sight and needed something, anything, to distract from a week of complicated headlines.
But here’s what Trump didn’t mention: this tax reflects the modern reality of global commerce. We’re not taxing wheat, we’re taxing clicks, targeted ads, and e-commerce platforms profiting off Canadians. It’s not specific to the U.S.-if Musk moves his head office to South Africa it will still apply. It just happens that these companies are mostly based in the U.S. And for the record, 11 U.S. states already have digital taxes of their own. So let’s not pretend Canada is doing something radical. France, the UK, Italy, Spain, they’ve already done it. We’re just finally collecting.
This isn’t about punishing America. It’s about fairness. Big Tech earns billions here. They should pay their share here. Trump’s tantrum is less about principle and more about protecting his billion-dollar buddies who’d rather pay lawyers than taxes.
Let’s also not forget: this wasn’t a surprise. His administration, trade lawyers, industry groups, everyone knew the June 30th deadline was coming. So no, this isn’t shock. It’s theatre.
And here’s where Mark Carney enters, cool, steady, fluent in global finance. While Trump blasts all caps into the ether, Carney might be quietly playing the long game. The digital tax, while important, isn’t on the same level as autos, steel, or critical trade infrastructure. That makes it a useful card, not a dealbreaker, but a chip worth playing.
Trump claims he holds all the cards. Maybe not this one. And let’s not forget: this wasn’t Carney’s policy. The digital tax was promised under the last government and kept in motion by the Finance Minister. But if Carney’s playing it smart, which I believe he is, then this timing might be less a problem and more a quiet opportunity. He doesn’t need to bellow. He just needs to hold firm.
No, I’m not panicked. I’m annoyed. Because this isn’t a real crisis, it’s a Friday fit from a guy who got a phone call and couldn’t go golfing. And while Trump’s trying to stir up a trade war over three percent, the rest of us are just trying to enjoy a long weekend and maybe catch a few rays and roast a few hot dogs.
And as I write this I am reminded that my summer holidays may never again include the U.S. Out of principle primarily but maybe a bit out of fear. If I handed over my phone and someone scrolled through what I’ve written about Trump, I’d either be detained, deported, or returned to sender with a sticky note that reads “Do not admit.”. And frankly, for now at least my travel dollars are better spent here, on Canadian soil, in Canadian communities, under skies that, for all our challenges, still feel like home.
So Happy Canada Day weekend. You beautiful, complicated, quietly confident country. We’ve got work to do, yes. But we’ve also got decency, intelligence, and a government that speaks for the people.
And to our southern neighbours: we hear you. We’re watching, we’re hoping, and we know that somewhere underneath the noise, you’re trying to hold on to something good, just like we are. So as we head into Canada Day, we’ll be raising our glasses, lighting our fires, and feeling pretty damn proud of this country that, despite its flaws, is still worth fighting for. And while I won’t be at your party on July 4th, consider this your invitation to ours.
We’ve got room for reason, not for rage. Canada’s 158th birthday starts now. Come by for the lakes, the laughter, and the decency. And while we may want to tax your tech billionaires, we don’t plan to read your texts or seize your phone at the border. We’re Canadian, not paranoid.
Nancy's Notes 