logo
Should Canada target Big Tech in trade war negotiations with the U.S.?

Should Canada target Big Tech in trade war negotiations with the U.S.?

Calgary Herald30-04-2025

Article content
Canada passed its own Digital Services Tax (DST) last year, rather than wait for an international agreement to establish common taxation standards that had been in the works. The DST aims to force big tech companies to pay their fair share of taxes and imposes a three per cent levy on digital services revenue over $20 million retroactive to 2022. Canada's move prompted an outcry from the U.S., which threatened retaliatory tariffs on 'discriminatory' taxes on American companies.
Article content
Canada's DST seemed destined for the chopping block earlier this year as Ottawa sought to stave off Trump's tariff threats, with Trump singling out Canada and France for implementing digital services taxes in a February executive order.
Article content
Article content
'These non-reciprocal taxes cost America's firms over US$2 billion per year. America has no such thing, and only America should be allowed to tax American firms,' the order proclaimed.
Article content
But the calculus may have now changed.
Article content
With the trade war in full swing, Ottawa is unlikely to back down on its DST plans for the first payments supposed to take effect this summer, said Michael Geist, the University of Ottawa's Canada research chair in internet and e-commerce law.
Article content
'Policies designed to ensure that tech companies pay their fair share have been raised for years — and will now no doubt continue to be raised,' he said.
Article content
Not only could increasing taxation of big tech be added to Canada's trade negotiation arsenal, but concerns about the lack of U.S. reliability raises bigger questions about big tech's role here, Karanicolas said.
Article content
Article content
Article content
'The time for naiveté is over. (The U.S.) could pull the rug out from under us if they chose to,' he said, pointing to Canada's reliance on U.S.-owned digital infrastructure, from cloud computing to enterprise software, as well as the dominance of U.S.-owned digital media platforms which could influence Canadian public opinion.
Article content
That might have seemed far-fetched when dealing with a close ally, but America's new hostile stance means the possibility can't be discounted.
Article content
'We've seen now the willingness of the U.S. government to abuse the powerful position that American tech platforms have,' he said, pointing to allegations that the Trump administration pressured Ukraine to sign over its critical minerals by threatening the country's access to internet satellite provider Starlink. Meanwhile, Meta has said that it is prepared to ask the Trump administration to safeguard the U.S. tech sector against tough-on-tech rules from jurisdictions such as the EU.
Article content
Preventative policies could come in the form of better rules that safeguard Canadian ownership over vital digital industries, such as national ownership requirements for social media companies, to supporting decentralized social media like Mastodon and BlueSky to dilute the power of big tech platforms, Karanicolas said.
Article content
Federal regulations prohibit American broadcasters or telecoms firms from buying out Canadian ones. Yet Canada has allowed American companies to 'completely dominate' information ecosystems relied on by Canadians.
Article content
'We should be thinking about these as critical national interests that we need to maintain Canadian sovereignty over,' he said.
Article content
Canada should make it as easy as possible for Canadians to switch to technological alternatives, according to Keldon Bester, executive director of the Canadian Anti-Monopoly Project (CAMP). And where there are no alternatives, robust competition and privacy rules, such as the EU's DMA, can help ensure that dominant tech firms play by Canadian rules and keep them accountable to public oversight, he said.
Article content
Article content
But actions targeting U.S. tech firms run the risk of triggering retaliation from the White House and could further strain Canada-U.S. ties.
Article content
'We have found out that it doesn't matter what you do, you will be subject to the whims of the (Trump) administration,' Bester said. Stricter rules from Ottawa doesn't mean that Canada is placing a bullseye on any country or set of companies, but sending a message that Canada is a sovereign nation.
Article content
'You don't get a free pass just because you push us around,' he said.
Article content
Chios Carmody, a professor and director of the Canada-United States Law Institute at the University of Western Ontario said earlier this year that Ottawa must stand firm on the DST and not 'cave in to U.S. demands.'
Article content
Article content
At the same time, he cautioned that big tech isn't 'necessarily a foe' and has a role to play in building a strong Canadian tech industry.
Article content
Whatever action Ottawa decides should prioritize Canada's economic and national security interests, Karanicolas said.
Article content
'We can't cower in fear due to the threat of retaliation. Any steps that we take shouldn't just be targeted towards American platforms. But taking these steps … to try to impose better accountability and transparency … is something that's in Canada's interest.'
Article content

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The Latest: Hegseth faces questioning from Congress amid immigration protests
The Latest: Hegseth faces questioning from Congress amid immigration protests

Toronto Star

time14 minutes ago

  • Toronto Star

The Latest: Hegseth faces questioning from Congress amid immigration protests

Defense Secretary Pete Hegseth is fielding sharp questions from members of Congress about his tumultuous start as Pentagon chief, including his sharing of sensitive military details over a Signal chat, in three separate Capitol Hill hearings beginning Tuesday. Meanwhile, President Donald Trump plans to speak at Fort Bragg to celebrate the 250th anniversary of the U.S. Army as he deploys the military in an attempt to quiet immigration protests in Los Angeles. Trump has promoted the Army's anniversary as a reason to hold a military parade in Washington, D.C., on Saturday, which is also his 79th birthday. Here's the latest: Ukraine's surprise drone attack on Russia has the US rethinking its own defenses, Hegseth says ARTICLE CONTINUES BELOW The attack in early June that destroyed a large number of Russian bomber aircraft caught the U.S. off guard and represented significant advances in drone warfare, Hegseth told lawmakers Tuesday. The attack has the Pentagon rethinking drone defenses 'so we are not vulnerable to a threat and an attack like that,' Hegseth told the House appropriations subcommittee on defense. Hegseth said the Pentagon 'is learning everyday from Ukraine,' and focused on how to better defend its own military airfields. Hegseth refuses to provide lawmakers details on costs of sending Marines to Los Angeles In a back an forth with the defense appropriations subcommittee's top Democrat, Hegseth refused to answer basic questions on the cost of deploying Marines to Los Angeles, instead falling back on political talking points. In a series of questions on the news that Marines would be sent to Los Angeles, House Appropriations defense subcommittee ranking member Rep. Betty McCollum told Hegseth 'this is a deeply unfair position to put our Marines in,' she said. 'There's no need for the Marines to be deployed.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW McCollum asked what the cost of the deployment would be. Hegseth deflected on the costs, attacked the decisions of the previous Biden administration instead and talked about illegal immigration. 'Could the Secretary please address the budget' McCollum asked him. Hegseth again refused to acknowledge McCollum's question and attacked the politics of the past administration again. McCollum took back her time and Hegseth was instructed by the committee chairman to provide the costs in writing instead. California Democrats accuses Trump of inciting unrest Democratic members of California's congressional delegation are accusing the president of creating a 'manufactured crisis' in Los Angeles with his orders to send in thousands of National Guard troops and hundreds of Marines. 'It's a deliberate attempt by Trump to incite unrest, test the limits of executive power and distract from the lawlessness of his administration,' said Rep. Jimmy Gomez, who organized a news conference at the U.S. Capitol on Tuesday morning. Rep. Jimmy Panetta said Trump's decision to send in the military was designed to 'give him the image and give him the fight and give him the pictures that he wants.' Rep. Nancy Pelosi contrasted Trump's actions now with his handling of the Jan. 6th insurrection at the U.S. Capitol when law enforcement officers were being beaten. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'We begged the president of the United States to send in the National Guard. He would not do it,' Pelosi said. Hegseth skirts acknowledging key controversies in opening remarks Based on his opening remarks in his first appearance before lawmakers since taking office, there's been nothing but smooth sailing in the defense chief's office. Hegseth completed his opening statement with no mention of his controversial use of Signal, of the lack of defense budget details to guide Congress, or his controversial firings of his own staff or military leaders. Hegseth also made no mention of a decision to deploy Marines into Los Angeles to respond to immigration raid protests. Instead, he clung closely to the talking points he's used since taking office, such as emphasizing that 'DEI is dead,' and that he's focused on a return to 'lethality.' Pentagon mired in 'controversy and chaos,' lawmaker says in Hegseth hearing Trump's defense chief faced a litany of questions on what some lawmakers called 'rash' or 'reckless' decisions or actions dating back to his first day in office, as Tuesday's hearing before the House Appropriations defense subcommittee began. In opening statements, lawmakers asked about Hegseth's decisions to fire top military leaders, his use of Signal and other controversies, including his firing of several staff members in his inner circle. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'The Department of Defense is mired in controversy and chaos,' said Rep. Rosa DeLauro, the ranking member of the full committee. Citing trade wars, the World Bank sharply downgrades forecast for global economic growth President Trump's trade wars are expected to slash economic growth this year in the United States and around the world, the World Bank forecast Tuesday. Citing 'a substantial rise in trade barriers'' but without mentioning Trump by name, the 189-country lender predicted that the U.S. economy — the world's largest — would grow half as fast (1.4%) this year as it did in 2024 (2.8%). That marked a downgrade from the 2.3% U.S. growth it had forecast back for 2025 back in January. The bank also lopped 0.4 percentage points off its forecast for global growth this year. It now expects the world economy to expand just 2.3% in 2025, down from 2.8% in 2024. ▶ Read more about the World Bank's forecast Trump links protests in Los Angeles to home rebuilding after wildfires Trump said his decision to 'SEND IN THE TROOPS' to Los Angeles spared the city from burning to the ground like thousands of homes after wildfires this year. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW He wrote on his social media site that people want to rebuild, and that the federal permitting process is 'virtually complete on these houses.' Trump claimed 'the easy and simple City and State Permits are disastrously bungled up and WAY BEHIND SCHEDULE!' and blamed California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass. 'People want to rebuild their houses. Call your incompetent Governor and Mayor, the Federal permitting is DONE!!!' he wrote. Trump's Tuesday schedule, according to the White House 12:25 p.m. — Trump will travel to Fort Bragg, North Carolina 2:40 p.m. — Once he arrives, Trump will observe a military demonstration 4:00 p.m. — Trump will deliver remarks to service members, veterans and their families 6:00 p.m. — Trump will travel back to the White House Defense Secretary Pete Hegseth to face Congress for first time since Signal leaks He's expected to field sharp questions from members of Congress about his tumultuous start as Pentagon chief, including his sharing of sensitive military details over a Signal chat, in three separate Capitol Hill hearings beginning Tuesday. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Lawmakers also have made it clear they're unhappy that Hegseth hasn't provided details on the administration's first proposed defense budget, which Trump has said would total $1 trillion, a significant increase over the current spending level of more than $800 billion. It will be lawmakers' first chance to ask Hegseth about a myriad of other controversial spending by the Pentagon, including plans to spend hundreds of millions of dollars on security upgrades to turn a Qatari jet into Air Force One and to pour as much as $45 million into a parade recently added to the Army's 250th birthday bash, which happens to coincide with Trump's birthday on Saturday. ▶ Read more about Defense Secretary Pete Hegseth RFK Jr. ousts entire CDC vaccine advisory committee Kennedy on Monday removed every member of a scientific committee that advises the CDC on how to use vaccines and pledged to replace them with his own picks. Major physicians and public health groups criticized the move to oust all 17 members of the Advisory Committee on Immunization Practices. Kennedy, who was one of the nation's leading anti-vaccine activists before becoming the nation's top health official, has not said who he would appoint to the panel, but said it would convene in just two weeks in Atlanta. Although it's typically not viewed as a partisan board, the entire current roster of committee members were Biden appointees. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW ▶ Read more about Kennedy's latest move Trump pushes ahead with his maximalist immigration campaign in face of LA protests Trump made no secret of his willingness to take a maximalist approach to enforcing immigration laws and keeping order as he campaigned to return to the White House. The fulfillment of that pledge is now on full display in Los Angeles. By overriding California's Gov. Gavin Newsom, Trump is already going beyond what he did to respond to Black Lives Matter protests in 2020, when he warned he could send troops to contain demonstrations that turned violent if governors in the states did not act to do so themselves. Trump said in September of that year that he 'can't call in the National Guard unless we're requested by a governor' and that 'we have to go by the laws.' But now, he's moving swiftly to test the bounds of his executive authority in order to deliver on his promise of mass deportations. What remains to be seen is whether Americans will stand by him once it's operationalized nationwide. For now, Trump is betting that they will. ▶ Read more about Trump's efforts to fulfill his immigration promises Trump heads to Fort Bragg while facing criticism for deploying military at Los Angeles protests Trump plans to speak at Fort Bragg on Tuesday to celebrate the 250th anniversary of the U.S. Army as he deploys the military in an attempt to quiet immigration protests in Los Angeles. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Fort Bragg, located near Fayetteville, North Carolina, serves as headquarters for U.S. Army Special Operations Command. Highly trained units like the Green Berets and the Rangers are based there. Defense Secretary Pete Hegseth and Army Secretary Dan Driscoll will also be at Tuesday's event, along with service members, veterans and their families. Trump has promoted the Army's anniversary as a reason to hold a military parade in Washington, D.C., on Saturday, which is also his 79th birthday. Trump, who sees the military as a critical tool for domestic goals, has used the recent protests in Los Angeles as an opportunity to deploy the National Guard and U.S. Marines to quell disturbances that began as protests over immigration raids. ▶ Read more about Trump's Fort Bragg trip

Market Open: Oil Gains Carry Canada's Main Index Up
Market Open: Oil Gains Carry Canada's Main Index Up

The Market Online

time29 minutes ago

  • The Market Online

Market Open: Oil Gains Carry Canada's Main Index Up

Oil prices just keep rising boosting Canada's main stock index with it this morning. Market Numbers (Futures) TSX :Up ( 0.02%) 26,381.08TSXV: Up (0.60%) 725.90DOW: Up (0.04%) 42,813.00NASDAQ: Up (0.19%) 21,862.00 FTSE: Up (0.56%) 8,881.55 In the Headlines: The U.S. Federal Reserve will keep interest rates on hold for at least another couple of months, as risks linger that inflation may resurge due to U.S. President Donald Trump's tariff policies. And Canada Post has slammed the brakes on arbitration talks, rejecting the union's terms and plunging the contract dispute into a deepening stalemate with no clear path to resolution. Currencies Update: (Futures) The Canadian dollar is up 0.08% to $0.7311, also climbing by 0.02% to $0.6301 against the Euro and Bitcoin grabs a hold of 1.66% to 149,905.36 Commodities: (Futures) Natural Gas: Down (1.30%), 3.59WTI: Up (0.54%), 65.64Gold: Up (0.32%), 3,338.12 Copper: Down (0.20%) 6.12 To stay up-to-date on all of your market news head to Join the discussion: Find out what everybody's saying check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here

Number of Canadians returning from U.S. trips down again in May: StatCan
Number of Canadians returning from U.S. trips down again in May: StatCan

National Post

time32 minutes ago

  • National Post

Number of Canadians returning from U.S. trips down again in May: StatCan

OTTAWA — Canadians continued to avoid making trips to the U.S. in May, according to preliminary data from Statistics Canada. Article content The agency says return trips by Canadian residents by air from the U.S. in May fell 24.2 per cent compared with a year ago to 488,800, while return trips from overseas countries rose 9.8 per cent to 1.1 million. Meanwhile, Canadian resident return trips from the U.S. by automobile totalled 1.3 million, down 38.1 per cent compared with May 2024. Article content Article content Article content Canadians have avoided travel to the U.S. in response to President Donald Trump's tariffs and '51st state' threats over the past few months. Article content Article content

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store