The Globe and Mail reports in its Thursday, July 3, edition that Ottawa recently cancelled its digital services tax (DST) in response to U.S. pressure, halting trade negotiations. The Globe's guest columnist Michael Geist writes that Finance Minister Francois-Philippe Champagne announced the decision, highlighting the government's difficult choice: maintain the DST and risk higher tariffs, or drop it and forego an estimated $7.2-billion in revenue over five years. While the cancellation underscores Canada's vulnerability, it prioritizes the necessity of a broader trade deal with the U.S. The digital tax issue is a recurring problem for the Canadian government, which often misreads the tech sector. Leaders propose tough digital policies, challenge companies and foreign governments, and then scramble for an exit strategy when faced with pushback. The trio of Internet laws that shaped Canadian digital policy under the Trudeau government faced controversy, particularly over user content regulation. The Internet streaming bill, intended to modernize broadcasting laws, encountered legal challenges from streaming companies and has yet to generate new revenues. It may also be at risk from potential Trump trade threats.