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Globe says Microsoft, rivals see Carney cave on DST

2025-07-02 07:22 ET - In the News

See In the News (C-MSFT) Microsoft CDR (CAD Hedged)

The Globe and Mail reports in its Tuesday, July 1, edition that late Sunday night, just before the DST collection was set to start, the Canadian government announced the halting of the June 30 collection and plans to rescind the Digital Services Tax Act. The Globe's Robyn Urback writes that this decision followed President Donald Trump's Friday post stating that the U.S. would immediately terminate all trade talks with Canada due to the tax. The tax would require tech giants earning over 750 million euros globally and $20-million in Canada to pay a 3-per-cent tax on revenue from specific on-line services. Ottawa aimed to implement the DST retroactively to 2022. There is an argument that it is always the right time to eliminate bad policy, and the DST was a poor choice. There were several chances to abolish it before Mr. Trump's ultimatum, including during the Biden administration, which identified it as a trade irritant. Killing the DST now shows desperation. It is a capitulation with no reward; the U.S. has agreed to resume talks, but that is all. The Globe says this decision indicates that our domestic policy is dictated by the White House, showing Canadians we are weak and willing to submit to the President's whims.

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