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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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Canada's Economy Surpasses Expectations with 2.2% Growth in Q1

 

Canada's economy grew at an annualized rate of 2.2% in the first quarter of 2025, exceeding market forecasts. The growth was primarily driven by strong exports, as businesses rushed to stockpile goods ahead of anticipated tariffs. 

Despite the positive headline figure, domestic demand showed signs of weakness, with household spending slowing to 0.3%, compared to 1.2% in the previous quarter. Business investment in machinery and equipment, however, provided a boost, increasing by 5.3%. 

The latest GDP data comes just days before the Bank of Canada's rate decision, which could influence monetary policy moving forward. Analysts had expected a 1.7% growth rate, making the 2.2% expansion a welcome surprise. 

With uncertainty surrounding trade policies and consumer spending trends, economists will be watching closely to see if this momentum continues into the second quarter.

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