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Tag: rescinded

  • Canada’s PM Carney Signals US Trade Talks Resume After Dropping Tech Tax

    North Americans Hit With Hefty Tariffs… Because of Fentanyl

    In a twist of trade‑tornadoes, both Canada and Mexico are slated to carry a sharp, 25‑percent tariff on certain goods— the result of President Trump’s anti‑fentanyl circus.

    What’s the deal?

    • Canadian response: Tariffs hit up to 25% on imports tied to illicit drug routes.
    • Mexican action: A parallel 25% barrier on similar goods—yes, they’re pulling the same lever.

    Why the big brakes on trade?

    Trump’s administration cranked up these fees as a way to stifle fentanyl smuggling across borders. The logic? Make shipping more expensive, deter the flow, and put pressure on bad actors.

    The trade‑tension fallout

    • Canadian businesses uneasy: higher costs mean pricier products for shoppers.
    • Mexican exporters feeling the pinch: “What’s next?” is a frequent chorus.
    • Consumers in both countries holding their breath—do we want to spend more, or keep the drug threat at bay?
    Bottom line

    So, if you’re a Canadian or Mexican importer, get ready for a bit of a loading fee on items that could be stepping stones in a drug smuggling operation… or a better way.

    US‑Canada Trade Talks Get A Fresh Start After Tax Back‑Out

    Quick recap: Canada pulled the plug on its plan to hit US tech giants with a tax, and both sides are back at the negotiation table. The whole drama unfolded after President Donald Trump declared the tax a “direct and blatant attack” on the U.S., igniting a brief trade spat.

    What Went Down?

    • Canada’s Digital Services Tax (DST) was a 3% levy on revenue from Canadian users, targeting the likes of Amazon, Google, and Meta.
    • It would have kicked in on Monday and applied retroactively, meaning U.S. companies could face a hefty $2 billion ($1.71 billion euro) bill by month‑end.
    • Trump called the DST a “direct and blatant attack,” and so he halted talks with Canada over the issue.

    Back in the Fold

    On Sunday, Prime Minister Mark Carney reported in a statement that the two leaders had dialed each other and agreed to resume negotiations. Canada promised to rescind the DST in anticipation of a deal, aligning the timeline to a July 21, 2025 deadline set at the G7 Leaders’ Summit.

    Carney added that the announcement would “support a resumption of negotiations” and that a 30‑day deadline was a big deal from the G7 summit in Alberta where Trump was in town.

    Why This Matters

    • Canada’s tax was the first rock‑solid step towards a potential trade breakthrough with the U.S., trailing its earlier “tax‑craig” accusations.
    • Trump’s stance, especially his rotating suggestion that Canada could be absorbed as a U.S. state, had turned the progression into a roller coaster.
    • Now, with the tax shelved, there’s hope that both countries can move past the roadblock and bring the trade talks back into motion.

    With a fresh push on the table, watch out for updates—things are moving fast, and the next chapter of the US‑Canada trade story could have even more punchlines.

  • Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax

    Trump’s Fentanyl‑Stopping Tariff Surprise

    What’s Happening?

    Picture this: The U.S. has slapped up to 25% tariffs on Canada and Mexico, all to try and stop fentanyl from slipping through the wires. It’s a move that’s turning trade into a real knot.

    • Canada’s shipments suddenly feel the sting of higher costs.
    • Mexican exporters pause before they ship, wondering if the price tag will pay off.
    • Consumers and businesses alike are left catching their breath, asking, “Who actually benefits?”

    It’s a hefty price tag for a common objective—hope the extra cost actually keeps the drug rolling out of sight.

    Tech Taxes, Trade Talks, and the Great Cross‑Border Shuffle

    Last Sunday, the Canada‑US political waltz finally found a new rhythm after Ottawa decided to ditch its plan to slap a tax on U.S. tech giants. Canadian Prime Minister Mark Carney announced that the two sides were ready to pick up the conversation again.

    Why the Back‑and‑Forth Was Wild

    • Trump’s Take: “This is a direct and blatant attack on our country.” The U.S. President threatened to pause talks as the Canadian tax was set to go live on Monday.
    • Canada’s Response: Ottawa renamed the tax “Digital Services Tax” and meant to hit firms like Amazon, Google, and Meta with a 3% levy on Canadian revenue – retroactively too. That would’ve left those companies scrambling for a $2 billion bill.
    • Negotiation Resumption: A Sunday call between the leaders confirmed that trade negotiations would start afresh, with Canada agreeing to pull the tax in “anticipation” of a deal.
    • Timeline Ticks: Both sides aim to hit the July 21, 2025 target, a date that was pinned down at the G7 Summit in Kananaskis earlier that month.

    Who’s Who in This Trade Tango

    Trump’s ultimatum came after a quick trip to the Canadian Rockies for the Alberta G7 summit, where the U.S. and Canada agreed on a 30‑day deadline for moving forward. The tax was under the spotlight because it would have slapped U.S. tech firms with a hefty tax that felt more like a stern lecture than a friendly handshaking.

    The Legally Delicious Tax

    Canada’s Digital Services Tax was designed to catch digitally‑driven businesses that earn money in Canada. The 3% strike might have seemed modest, but applied retroactively, it racked up a whopping $2 billion worth of U.S. fare to pay by the month’s end—one that would’ve sent a few of the big dogs chirping in protest.

    From Crisis to Collaboration

    Trump’s sharp comments marked a new chapter in the trade war that has been on the runner’s track since he took office in January. The saga has been a roller coaster, with the President once joking about turning Canada into a U.S. state—something that clearly didn’t stick in the long run.

    Good news? Ottawa’s decision to rescind the tax opens a window for the two nations to find common ground and finish that 2025 deadline. The trade talk board is back in play, and the chess game might just end with less tense moves. Stay tuned—this cross‑border dance has just gotten a little less awkward!