Carney crumbles under pressure: Digital Services Tax rescinded after Trump halts trade negotiations
Canada rescinded the tax just days ahead of its July implementation following pressure and halted trade negotiations from U.S. President Donald Trump.
Canada’s Department of Finance announced on June 29 that the controversial Digital Services Tax (DST) would be rescinded immediately, following a collapse in trade negotiations and pressure from U.S. President Donald Trump.
White House Press Sec. Karoline Leavitt says Mark Carney "caved" to President Trump after Canada rescinded its Digital Services Tax targeting American tech companies.
— Rebel News (@RebelNewsOnline) June 30, 2025
"It was a mistake for Canada to vow to implement that tax," she says. pic.twitter.com/PtS8W3WL2e
This decision marks a significant triumph for the over 11,000 Rebel News supporters who rallied behind the StopTheInternetTax.ca petition, exposing the tax as a Liberal scheme to fleece both citizens and businesses.
Initially proposed in 2020 under former prime minister Justin Trudeau, the DST was marketed as a means to ensure tech giants like Netflix and YouTube paid their “fair share.” In reality, it was a thinly veiled cash grab, compelling U.S. and Canadian companies to register and remit funds to Ottawa.
The policy would burden Canadians already grappling with soaring taxes and a sluggish economy, especially as many, including Carney’s own Brookfield Asset Management, have increasingly fled Canada to escape stifling regulations. President Trump’s response was swift and uncompromising. Threatening tariffs and halting trade talks, he publicly criticized Carney, dismantling the Prime Minister’s “elbows up” boasting.
Mark Carney claims he had a "good conversation" with President Trump last night after Canada rescinded its Digital Services Tax targeting American tech companies.
— Rebel News (@RebelNewsOnline) June 30, 2025
"We agreed to recommence our negotiations," he says. pic.twitter.com/9o6YV5b5y4
Within days, Carney capitulated, scrapping the DST. Finance Minister François-Philippe Champagne framed the retreat as a move to “protect jobs,” but the reality is clear: this was a surrender to U.S. pressure, exposing the Liberals’ willingness to trade their supposed principles for political expediency, and how easily they crumble under pressure.
Critics suspect the DST was a trojan horse for broader internet regulation, potentially paving the way for the revival of the contentious Online Harms Act (Bill C-63).
President Trump tells Fox News' Maria Bartiromo that although he loves Canada, it's a very "nasty" country to deal with.
— Rebel News (@RebelNewsOnline) June 30, 2025
"Canada should be the 51st state. It really should, because Canada relies entirely on the United States, we don't rely on Canada," he says. pic.twitter.com/Vak3T4jZCQ
For now, Canadians can breathe a sigh of relief as this ill-conceived tax is scrapped.
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COMMENTS
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Olga Seminutin commented 2025-07-04 22:56:17 -0400Yep, Carny is playing checkers..
But i have it on very good authority that his shenanigans are going to end soon.. -
S M commented 2025-07-02 11:00:09 -0400Carney also went back on his word to give the military a pay raise as well I have just read, is it pre requisite to be a weasel to be a politician?
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Robert Pariseau commented 2025-06-30 21:35:58 -0400In that case, try Go Fish instead.
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Bernhard Jatzeck commented 2025-06-30 20:29:06 -0400Actually, I think Trump is playing poker rather than chess. Poker involves bluffing, seeing whether the other player is willing to take a chance based on what’s in the hand.
So far, Trump’s been quite successful in calling Carney’s bluff. -
Bruce Atchison commented 2025-06-30 19:01:50 -0400So much for “elbows up”. Marx Carney and his followers didn’t recon on Donald Trump. Let’s hope other anti-speech laws are squelched by Trump.
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Robert Pariseau commented 2025-06-30 16:08:44 -0400Trump is a boss, playing six-dimensional chess.
Carney is a peewee, playing Candyland Bingo.
