World Business Report Trump trade: one step forward, two steps back
Jun 27, 2025
Carlyne Varian, Associate Vice President at Summer Strategies and former Chief of Staff to Justin Trudeau, dives into the current trade turmoil. She discusses how Trump's halt on negotiations over Canada's digital services tax complicates relations. The conversation also touches on the fragile US-China agreement regarding critical minerals and its implications. Varian sheds light on market reactions to these developments, including potential inflation risks. Plus, she highlights Glastonbury's unexpected economic prowess and cultural significance.
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Trump Halts Canada Trade Talks
- President Trump has halted trade talks with Canada over its digital services tax targeting big tech firms.
- The timing suggests strategic pressure as the tax was about to be implemented.
Canada's Digital Tax Complication
- The digital services tax mainly affects large foreign tech companies, but some Canadian businesses indirectly pay it.
- Canada faces pressure since US is its top trading partner, risking large trade losses if tensions escalate.
Global Tech Tax Trend
- Many countries introduced digital services taxes on big tech due to challenges taxing intangible digital revenues.
- The global trend seeks to make tech giants pay taxes where they generate revenue, countering tax avoidance.