CAN-USA 2025 Tariff Strife (split from various pol threads)

[brihard]

Canada rescinds digital services tax in a bid to advance trade talks with U.S.

Canada has rescinded its digital services tax targeting U.S. technology firms in a bid to advance trade negotiations with the U.S., Canada’s finance ministry said in a statement on Sunday, days after U.S. President Donald Trump called off trade talks.

www.ctvnews.ca

So let’s see what the next tantrum will be.

Supply management, even though they practically never hit the quotas.

If there’s any PM who might kill supply management, it’s Carney. But it’s absurdly politically sensitive so who knows if he will.

 

[RangerRay]

Well, I got that one wrong. I didn’t think there was anyway the Liberals would ditch that tax, especially after Trump demanded it.

 

[daftandbarmy]

Meanwhile, the manufacturing sector - a primary money maker - struggles...

Statistics Canada says real GDP down 0.1 per cent in April as manufacturing slowed​

OTTAWA — The Canadian economy edged lower in April as the manufacturing sector posted its largest drop since April 2021 in the face of U.S. tariffs. Statistics Canada said Friday that real gross domestic product edged down 0.1%

The Canadian economy edged lower in April as the manufacturing sector posted its largest drop since April 2021 in the face of U.S. tariffs.

Statistics Canada said Friday that real gross domestic product edged down 0.1 per cent in April and that its advance estimate for May pointed to a similar decline.

TD economist Marc Ercolao said the downside risks to Canada's economic growth are beginning to manifest, especially in tariff-exposed sectors.

"April's underperformance combined with downbeat expectations for May leave second quarter growth tracking a mild contraction, setting up a sharp pullback from Q1 readings," Ercolao wrote in a report.

"Past this, the outlook through the belly of the year faces clear downside risk as the direct impact from tariffs add to the headwinds from plunging business and consumer sentiment."

April marked the first full month of tariffs from the United States in many sectors — particularly targetting Canada's steel, aluminum and automotive industries.

Statistics Canada says real GDP down 0.1 per cent in April as manufacturing slowed

OTTAWA — The Canadian economy edged lower in April as the manufacturing sector posted its largest drop since April 2021 in the face of U.S. tariffs. Statistics Canada said Friday that real gross domestic product edged down 0.

www.vancouverisawesome.com

 

[Czech_pivo]

Canada rescinds digital services tax in a bid to advance trade talks with U.S.

Canada has rescinded its digital services tax targeting U.S. technology firms in a bid to advance trade negotiations with the U.S., Canada’s finance ministry said in a statement on Sunday, days after U.S. President Donald Trump called off trade talks.

www.ctvnews.ca

So let’s see what the next tantrum will be.

Good question.

 

[Halifax Tar]

Glad to see the Gov saw the light and walked back on this silly tax.

 

[Retired AF Guy]

Supply management, even though they practically never hit the quotas.

If there’s any PM who might kill supply management, it’s Carney. But it’s absurdly politically sensitive so who knows if he will.

Didn't Parliament just pass a new law that pretty makes it impossible to get rid of supply management?

 

[brihard]

I’m not sure, but what you say does ring a bell.

 

[HavokFour]

I suspect DST was a sacrificial lamb, for supply management. The latter having a significantly bigger effect on the economy.

 

[The Bread Guy]

Didn't Parliament just pass a new law that pretty makes it impossible to get rid of supply management?

"Impossible" may be a strong word*, but they did pass a law to keep supply management out of trade talks, after a similar law disappeared with proroguation late last year - here's what passed:

C-202 (45-1) - LEGISinfo - Parliament of Canada

C-202 (45-1) - LEGISinfo - Parliament of Canada

www.parl.ca

Unanimous "yes"** on third reading in the House, Royal Assent last Thursday (26 June 2025), with mixed reviews, depending on what you're growing/producing.

Farmgate: Pleased with passage of supply management trade bill

Standard-Freeholder columnist celebrates passage of bill that protects supply managed commodities in future trade deals.

www.standard-freeholder.com

Passage of Bill C-202 brings mixed reviews and concerns over future trade talks

Canada's supply managed sector is breathing a sigh of relief with the passage of Bill C-202 which protects it from any further concessions in future trade talks. An identical bill died on the order paper in the last session but this time moved quickly through Parliament and the Senate, before...

www.reachfm.ca

• "Opinion: We needed to get rid of the dairy cartel, not sanctify it in law" (Financial Post)
• "Bill to protect supply management passes, exporters disappointed"
• Canola Farmers Express Deep Disappointment with Passage of C-202 | Farms.com
• "The Beef Farmers of Ontario (BFO) is disappointed to learn of the passing of Bill C-202, an Act to amend the Department of Foreign Affairs, Trade and Development Act ..."

* - Keep in mind they passed more than one law on the digital services tax, too
** - Notable absence: Poilievre was not in the House for that vote on June 5th.

 

[Czech_pivo]

I suspect DST was a sacrificial lamb, for supply management. The latter having a significantly bigger effect on the economy.

Most likely.
No doubt our Mandarins are white boarding/role playing out a few dozen scenarios for each and every possible or long shot issue that could come out.

 

[RangerRay]

It’s funny seeing the “elbows up” crowd lighting their hair on fire over this. Hopefully Trump has a tantrum on C-19 and C-63.

 

[QV]

lol.
PP would be doing no better than the current PM.

Pure speculation based on nothing.

 

[QV]

Glad to see the Gov saw the light and walked back on this silly tax.

They didn't see any light. They're backed into a corner and have been forced.

 

[Good2Golf]

Pure speculation based on nothing.

Mmmm, not ‘nothing’…something, because, you know, he went from leading the polls to failing to even get elected.

It seems your ‘pure speculation based on nothing’ assessment is in fact itself based on nothing.

 

[QV]

Mmmm, not ‘nothing’…something, because, you know, he went from leading the polls to failing to even get elected.

It seems your ‘pure speculation based on nothing’ assessment is in fact itself based on nothing.

And how do you suggest PP may have done against Trump without actually seeing how he does?

 

[KevinB]

And how do you suggest PP may have done against Trump without actually seeing how he does?

Because POTUS doesn’t act rationally.
While I would have preferred PP as the Cdn PM, I’m not sure he would have had any better results, and frankly probably would have ended up in a screaming match with POTUS.

 

[Good2Golf]

And how do you suggest PP may have done against Trump without actually seeing how he does?

It’s a moot point.

How would Jagmeet Singh have done against Trump?

 

[QV]

It’s a moot point.

How would Jagmeet Singh have done against Trump?

Nobody can know, but you can speculate

Because POTUS doesn’t act rationally.
While I would have preferred PP as the Cdn PM, I’m not sure he would have had any better results, and frankly probably would have ended up in a screaming match with POTUS.

Doesn't matter. Canadians chose the LPC and the LPC is what they'll get.

 

[Remius]

Doesn't matter. Canadians chose the LPC and the LPC is what they'll get.

They likely will do so again if the CPC stays with the guy they have.

 

[Czech_pivo]

Pure speculation based on nothing.

lol, ok.