Trade Tensions and Digital Taxes

Prime Minister Mark Carney set a deadline of July 21 to reach an economic and security deal with the United States after last month’s G7 summit. But negotiations were derailed last week when U.S. President Donald Trump called off talks, blaming Canada’s digital services tax, which was set to come into effect on June 30. Two days later, Carney rescinded that tax, and talks were back on.

Adrian Morrow is the Globe’s U.S. correspondent, based in Washington. He’s on the show to talk about the risk Carney took by giving up on the digital services tax so quickly, whether this is really in line with his ‘Elbows Up’ campaign, and what Trump seems to want from negotiations.

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