Media Mentions

Trump targets Canada’s digital services tax with America First trade policy – CBC News

Jan 22, 2025 2 MIN READ
People Mentioned
Jesse Goldman

Partner, Competition, Trade and Foreign Investment, Toronto

An executive order recently signed by U.S. President Donald Trump brings the Canadian government’s digital services tax (DST) under scrutiny. The DST seeks to generate revenue by targeting large digital businesses with a 3% tax on revenues in Canada over $20 million.

President Trump’s America First trade policy aims to achieve the maximum benefit for American workers and businesses. The DST is at odds with this policy and threatens to further aggravate the trade relationship between Canada and the U.S.

Speaking with CBC News, Jesse Goldman, partner in the Competition, International Trade and Foreign Investment Group, said the DST is one of the “principal frictions” in the trading relationship between the U.S. and Canada.

“I think it’s a virtual certainty that something will be done by way of unilateral U.S. action against Canada’s digital services tax until such time as it’s either withdrawn or Canada and the U.S. reach some other type of agreement.”

Trump has the power to impose tariffs or ban a country’s imports altogether if they are found to discriminate against the U.S. Goldman says while an outright ban is highly unlikely, if Canada doesn’t drop the DST, Trump’s reaction is likely to come in the form of tariffs. 

Read the full article published on January 22, 2025, by Peter Zimonjic on the CBC News website.

People Mentioned
Jesse Goldman

Partner, Competition, Trade and Foreign Investment, Toronto