The Briefing Canada caves to Trump, dropping tech tax to resume trade talks with US
Jun 30, 2025
Ines Rocha, the Regional Director for Europe at the International Finance Corporation, shares insights on Canada's sudden decision to abandon its digital tax on U.S. tech giants. She delves into how this move is viewed as a concession to Trump, impacting trade negotiations. Rocha also discusses the economic challenges Ukraine faces amid ongoing conflict, emphasizing the crucial role of international aid and the resilience of its private sector. The conversation reflects on the intertwining of domestic policies and international relations.
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Canada’s Trade Concession Insight
- Canada suspended its digital services tax to prevent a halt in trade talks with the US.
- This move suggests Canada holds fewer leverage cards in negotiations with the US under Trump.
Canada’s Trade Dependency Challenge
- Canada is more reliant on the U.S. than vice versa, making it difficult to resist U.S. trade demands.
- Challenges remain around Canada's dairy market protections, a political hotspot in trade talks.
Canada Eyes Diversified Trade Markets
- Initial Canadian patriotism amid trade tensions has faded but resentment remains.
- Canadian companies are seeking to diversify markets beyond the U.S., expanding into Europe.