Global National: June 27, 2025 | Canada’s Digital Services Tax Pushes Trump to Axe Trade Talks
In a surprising turn of events, U.S. President Donald Trump has abruptly halted trade talks with Canada, citing the nation’s impending digital services tax as the flashpoint for his decision. Set to impose the tax on major American tech companies starting Monday, Canada’s move has sparked Trump’s ire, prompting him to threaten new tariffs as a retaliatory measure. This decision starkly contrasts his earlier commitments made to Prime Minister Mark Carney during the G7 Summit, where he had pledged to work towards alleviating a range of existing tariffs by mid-July. According to political analyst David Akin, this escalating tension could have significant ramifications for the Canadian economy and its trade relationships.
The announcement comes at a precarious time for Canada, as economic indicators reveal signs of contraction. Data from Statistics Canada shows that the country’s GDP shrank by a tenth of a percentage point in April, primarily due to downturns in the manufacturing and export sectors. Anne Gaviola notes that the risk of a recession looms large as these economic challenges converge with weakened trade negotiations. Analysts are now left to wonder how this development will further impact Canada’s economic landscape.
In a related development on the American side, the U.S. Supreme Court dealt a significant blow to judicial oversight, ruling that individual judges lack the authority to issue nationwide injunctions, a practice that has hindered Trump’s policy agenda. This decision could have profound implications for various initiatives, including contentious topics like birthright citizenship. Jackson Proskow explores the repercussions of this ruling and its potential to reshape Trump’s policy ambitions amid ongoing conflicts.
As Trump continues to implement a stringent immigration policy, health care providers express increasing concerns about the treatment of refugees and asylum seekers. With hundreds gathered in Halifax for an annual conference, the backdrop of Trump’s aggressive deportation tactics and ICE raids adds a layer of urgency and complexity to discussions. Correspondent Heidi Petracek reports on the heightened anxieties among healthcare professionals, who are navigating the intersecting issues of immigration, health care, and humanitarian aid.
As Canada braces for the fallout from Trump’s abrupt maneuver, the tension between the two nations intensifies, raising critical questions about the future of trade, economic stability, and international relations in an increasingly volatile landscape.
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