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Ottawa Backs Down on Digital Tax Dispute Amid Pressure from Trump White House

Canada has reportedly agreed to delay its planned digital services tax (DST) following pressure from former U.S. President Donald Trump’s administration, according to a recent statement from the White House. The tax, which was originally slated to target tech giants like Amazon, Meta, and Google, had been a major sticking point in U.S.-Canada trade discussions. The White House claimed Canada “caved” to U.S. demands after months of negotiations, with Trump’s team arguing the tax unfairly targeted American firms. The Canadian government, however, framed the delay as a strategic move to preserve economic stability and avoid retaliatory tariffs. Critics within Canada argue that the government’s decision reflects a growing trend of yielding to U.S. economic influence, while others say the delay is pragmatic given ongoing global talks about a coordinated approach to taxing digital revenues. The issue remains contentious, and observers are watching closely to see whether Canada will revive th...
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Market Turmoil as U.S. Consumer Confidence Plummets

In a dramatic turn of events, U.S. consumer confidence experienced its steepest decline in three and a half years, sending shockwaves through the stock market. The Conference Board reported that its Consumer Confidence Index fell to 98.3 in February, down from 105.3 in January. This seven-point drop marks the largest single-month decline since August 2021.

The decline in consumer confidence has been attributed to a mix of factors, including rising inflation, concerns over tariffs, and uncertainty surrounding the policies of President Donald Trump. Stephanie Guichard, senior economist for Global Indicators at The Conference Board, noted that consumers became increasingly pessimistic about future business conditions and less optimistic about future income.

The impact of this decline was felt across the stock market, with major indices experiencing significant losses. The Nasdaq Composite Index tumbled 1.4%, while the S&P 500 shed 0.5%. Investors are now closely watching upcoming economic data releases, particularly Friday's inflation report, for further insights into the state of the U.S. economy.

As consumer confidence wanes, the outlook for the U.S. economy remains uncertain. The potential for a recession looms large, with the Conference Board's expectations index dropping below the threshold that typically signals a recession ahead. For now, both consumers and investors are left grappling with the implications of this sudden shift in sentiment.


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