Evan, I must agree with you that the DST is a principled but insignifcant issue in the larger picture of trade. Waiting is key to see what the outcomes are by July 21st and beyond. As far as a DST goes, all nations around the world need to agree on a DST for the named tech corporations so they have no where to hide or be subject to corruption and give billionaires more tax breaks. All nations need more revenues as it is clear that tax law generally is written by and for the wealthy. One only has to look at that Big Beautiful Budget DJT is selling. Let's wish the PM luck.
There is nothing stopping Carney from reinstating the digital services tax if negotiations fail by July the 21st. In fact everything should be on the table, including export taxes on energy.
Trump and his minions promised 90 trades deals in 90 days. I do not know which day 90 it is, but so far there have been zero trade deals. Except maybe the deal with the UK, which was more of a plan for a concept to plan a trade deal and then broken by Trump a few days later.
In the end nothing is going to happen until Trump MAGA voters start turning against him. In the meantime we will have to deal with the bad faith commentariat in Canada: “The DST is a stupid tax, why are we jeopardizing the relations with US for this”, followed by “Carney caved, elbows down!”
EDIT: the White House today celebrated the DST removal as a PM Carney caving to President Trump. In real negotiations you do not celebrate a major concession of your negotiation partner as a victory. You say you welcome this change and look forward to completing the negotiations. You don’t make it harder for your negotiation partner to make additional concessions. Which brings me to what I believe is really going on. Trump is not interested in a new trade deal. He likes tariffs and he likes chaos. He is not interested at all to finalize the negotiations with Canada or any of the other ones.
I’m willing to wait and see. I’m tired of people who immediately turn on anyone who does one thing they don’t like, even when they don’t really know all the facets of the thing.
I’m with you. If he capitulates for real, I’ll be pelting rocks at your side.
You are correct on this Evan. The chess and checkers analogies have been done to death with The Cheeto, but needs must to manoeuvre him to a reasonable outcome until he is gone and adults return to the fore down south.
I fully understand that he can’t be trusted in anything, and when we sign a deal he very likely will break it in days, if not hours, but it truly is a marathon, not a sprint. We need to keep things in motion whilst we hope our American cousins find a way to end the madness.
All true, except you posit that there's an actual end, as in a play, whereas Trump is more a daily soap opera that goes on for years until it's cancelled.
Sadly for Carney and team he can't wink at the camera and say "Pssst... Canada. Don't tell Trump, but here's how tossing them this one this plays into our overall strategy."
I don't like giving I. to bullies so I wrote to my MP expressing my displeasure:
Dear Minister Anand, as one of your constituents, I was very disappointed to read that the Digital Services Tax has been cancelled. This tax, as I am sure you are aware, implemented the position that if you do business here, whether you have a physical presence or not, you pay tax here. Giving in to the bully Trump’s demand that we withdraw this tax completely undermines this principal. In addition, it undermines our negotiating positions in that if Donald Trump threatens something, we roll over and give him what he wants. This is not the way to treat a bully. Elbows up.
If this sealed a deal (which will get broken in record time), then all good.
If this is a Neville Chamberlain move, we're deeply screwed. All roads with Trump lead to 51st state. Give a malignant narcissist a coffee, he will eat you for breakfast, then look for dessert.
You are totally right. Plus the fact that the OECD is continuing legislation on its "omnibus" multinational version of our DST,of which we and the EU are participants... and where was PMMC last week? At the EU ... who's to say that global shoe may drop soon too? If so, then we have advanced our needs - continued talks - and given up nothing.
I don't think I would have such strong negative feelings to this apparent capitulation if Champagne himself didn't insist it was staying just 2 days ago. It was this government that made it sound like it was willing to die on this hill when, obviously, that was not the case. So, it is a no brainer that people would take that cue and now react badly to this move.
My sentiments exactly. PM Carney said that reciprocal tariffs will apply if 47 reneges on his commitment to resolve trade issues by whatever date it was. Obviously Trump loves the drama of affecting Canadians, but diplomacy strengthens, reacting weakens.
If anyone raised a defiant teen who insisted on breaking all the rules, then they know the fragility of managing Trump. New strategies are discovered every day for ways to keep the boat afloat until the storm has passed.
Sorry Evan. Canadians have every right to get upset about Trump calling the shots on Canadian taxes. Caving to Trump further emboldens him, and will make things worse for us and definitely for our American friends. Wake the f up! Trump passed the Big Beautiful Bill, opened up Russia’s frozen bank accounts and is now openly discussing deporting US citizens. And all this since Sunday. Maybe quit writing for awhile, sit down and read some history from the 1930’s. By drawing a line on “small” things you avoid having to draw lines on “big” things. If you say you are going to do something … do it! If you are not willing to follow through don’t say anything. Now Trump and Americans don’t know if we mean what we say. Expect more prodding.
To suggest people are morons because they don't realize Carney has to deal with Trump, seems to discard the fact that a whole team of people are behind the complex International negotiations. Or it almost implies that Trump acts in opposition to internal desires.
PER: "At least, that’s what he did if you are a fucking moron, because Mark Carney has to deal with Donald Trump."
When trade is negotiated, do we believe it to be completed exclusively between Donald Trump and Mark Carney, who single-handedly determine strategy, establish their fixed positions, and carry the fate of their respective nations in the balance of their one-on-one battle for a better deal?
Perhaps this ignorance, is *exactly why* Trump wants what you described as an incoherent mess, and the public to perceive they are "winning". You suggested the DST is nothing in comparison to all the other changes seen, and it'd take the return to a Biden era to see that again. Did Trump usher this in, or Trump and a whole team of Americans who back this approach?
Again, the idea that Trump is acting *against* the wishes of the U.S. administration, perhaps this acts as a great distraction to help his whole team to play our lack of clarity against us. This is classic negotiation, not wanton disorder.
Lunatic or not, if your aim is to criticize the negotiation of trade, I would reserve judgement until you see what the terms look like in the end. You might very well be in the #1 spot to criticize Carney should the U.S. continue to succeed in their trade aims.
I personally feel it better to focus on the actions and policy of governance, and to let go of being overly attached to the actors playing all the parts. Otherwise, let me introduce you to "bad cop", so you can know I'm the "good cop".
It was particularly galling considering the obscene and vulgar display of wealth we could not get away from every time we turned on the TV or a news app last weekend.
Evan, I must agree with you that the DST is a principled but insignifcant issue in the larger picture of trade. Waiting is key to see what the outcomes are by July 21st and beyond. As far as a DST goes, all nations around the world need to agree on a DST for the named tech corporations so they have no where to hide or be subject to corruption and give billionaires more tax breaks. All nations need more revenues as it is clear that tax law generally is written by and for the wealthy. One only has to look at that Big Beautiful Budget DJT is selling. Let's wish the PM luck.
There is nothing stopping Carney from reinstating the digital services tax if negotiations fail by July the 21st. In fact everything should be on the table, including export taxes on energy.
Trump and his minions promised 90 trades deals in 90 days. I do not know which day 90 it is, but so far there have been zero trade deals. Except maybe the deal with the UK, which was more of a plan for a concept to plan a trade deal and then broken by Trump a few days later.
In the end nothing is going to happen until Trump MAGA voters start turning against him. In the meantime we will have to deal with the bad faith commentariat in Canada: “The DST is a stupid tax, why are we jeopardizing the relations with US for this”, followed by “Carney caved, elbows down!”
EDIT: the White House today celebrated the DST removal as a PM Carney caving to President Trump. In real negotiations you do not celebrate a major concession of your negotiation partner as a victory. You say you welcome this change and look forward to completing the negotiations. You don’t make it harder for your negotiation partner to make additional concessions. Which brings me to what I believe is really going on. Trump is not interested in a new trade deal. He likes tariffs and he likes chaos. He is not interested at all to finalize the negotiations with Canada or any of the other ones.
I’m willing to wait and see. I’m tired of people who immediately turn on anyone who does one thing they don’t like, even when they don’t really know all the facets of the thing.
I’m with you. If he capitulates for real, I’ll be pelting rocks at your side.
You are correct on this Evan. The chess and checkers analogies have been done to death with The Cheeto, but needs must to manoeuvre him to a reasonable outcome until he is gone and adults return to the fore down south.
I fully understand that he can’t be trusted in anything, and when we sign a deal he very likely will break it in days, if not hours, but it truly is a marathon, not a sprint. We need to keep things in motion whilst we hope our American cousins find a way to end the madness.
All true, except you posit that there's an actual end, as in a play, whereas Trump is more a daily soap opera that goes on for years until it's cancelled.
Sadly for Carney and team he can't wink at the camera and say "Pssst... Canada. Don't tell Trump, but here's how tossing them this one this plays into our overall strategy."
I don't like giving I. to bullies so I wrote to my MP expressing my displeasure:
Dear Minister Anand, as one of your constituents, I was very disappointed to read that the Digital Services Tax has been cancelled. This tax, as I am sure you are aware, implemented the position that if you do business here, whether you have a physical presence or not, you pay tax here. Giving in to the bully Trump’s demand that we withdraw this tax completely undermines this principal. In addition, it undermines our negotiating positions in that if Donald Trump threatens something, we roll over and give him what he wants. This is not the way to treat a bully. Elbows up.
If this sealed a deal (which will get broken in record time), then all good.
If this is a Neville Chamberlain move, we're deeply screwed. All roads with Trump lead to 51st state. Give a malignant narcissist a coffee, he will eat you for breakfast, then look for dessert.
You are totally right. Plus the fact that the OECD is continuing legislation on its "omnibus" multinational version of our DST,of which we and the EU are participants... and where was PMMC last week? At the EU ... who's to say that global shoe may drop soon too? If so, then we have advanced our needs - continued talks - and given up nothing.
I don't think I would have such strong negative feelings to this apparent capitulation if Champagne himself didn't insist it was staying just 2 days ago. It was this government that made it sound like it was willing to die on this hill when, obviously, that was not the case. So, it is a no brainer that people would take that cue and now react badly to this move.
Fear not! I believe that Champagne spoke as instructed. It was a necessary line in the script to move the plot forward! ♟️❤️🇨🇦
I’m very grateful for this post. I was feeling quite untethered when I read about the turnaround. Thanks Evan.
My sentiments exactly. PM Carney said that reciprocal tariffs will apply if 47 reneges on his commitment to resolve trade issues by whatever date it was. Obviously Trump loves the drama of affecting Canadians, but diplomacy strengthens, reacting weakens.
If anyone raised a defiant teen who insisted on breaking all the rules, then they know the fragility of managing Trump. New strategies are discovered every day for ways to keep the boat afloat until the storm has passed.
Sorry Evan. Canadians have every right to get upset about Trump calling the shots on Canadian taxes. Caving to Trump further emboldens him, and will make things worse for us and definitely for our American friends. Wake the f up! Trump passed the Big Beautiful Bill, opened up Russia’s frozen bank accounts and is now openly discussing deporting US citizens. And all this since Sunday. Maybe quit writing for awhile, sit down and read some history from the 1930’s. By drawing a line on “small” things you avoid having to draw lines on “big” things. If you say you are going to do something … do it! If you are not willing to follow through don’t say anything. Now Trump and Americans don’t know if we mean what we say. Expect more prodding.
To suggest people are morons because they don't realize Carney has to deal with Trump, seems to discard the fact that a whole team of people are behind the complex International negotiations. Or it almost implies that Trump acts in opposition to internal desires.
PER: "At least, that’s what he did if you are a fucking moron, because Mark Carney has to deal with Donald Trump."
When trade is negotiated, do we believe it to be completed exclusively between Donald Trump and Mark Carney, who single-handedly determine strategy, establish their fixed positions, and carry the fate of their respective nations in the balance of their one-on-one battle for a better deal?
Perhaps this ignorance, is *exactly why* Trump wants what you described as an incoherent mess, and the public to perceive they are "winning". You suggested the DST is nothing in comparison to all the other changes seen, and it'd take the return to a Biden era to see that again. Did Trump usher this in, or Trump and a whole team of Americans who back this approach?
Again, the idea that Trump is acting *against* the wishes of the U.S. administration, perhaps this acts as a great distraction to help his whole team to play our lack of clarity against us. This is classic negotiation, not wanton disorder.
Lunatic or not, if your aim is to criticize the negotiation of trade, I would reserve judgement until you see what the terms look like in the end. You might very well be in the #1 spot to criticize Carney should the U.S. continue to succeed in their trade aims.
I personally feel it better to focus on the actions and policy of governance, and to let go of being overly attached to the actors playing all the parts. Otherwise, let me introduce you to "bad cop", so you can know I'm the "good cop".
'The United Kingdom is currently planning to keep its digital services tax,'
'France, which was the first in Europe to implement one 2019, is also standing by its measure'.
Mark Carney is the only world leader waving a white flag. The more you keep giving a bully your lunch money, the worse it'll get.
https://financialpost.com/news/economy/uk-stands-digital-services-tax-canada-bows-trump
It was particularly galling considering the obscene and vulgar display of wealth we could not get away from every time we turned on the TV or a news app last weekend.