Canada’s Digital Services Tax (DST) officially came into force in June 2024, with payments due by June 30, 2025. It applies a 3% tax on revenue that large tech firms—domestic or foreign—make from online services to Canadian users. Companies must earn €750 million globally and C$20 million in Canadian digital sales annually to be affected.
The tax includes revenues from online ads, marketplaces, streaming, and user data. Over time, this new policy could generate C$7.2 billion by 2027, helping Canada tap into the digital economy.
Explore full details about the Digital Services Tax on the Government of Canada website
U.S.–Canada Trade Clash: Trump Responds
Trump’s Truth Social Statement
On June 27, 2025, U.S. President Donald Trump posted on Truth Social that he was ending all trade negotiations with Canada, calling the tax “egregious” and “unacceptable.” He also confirmed that new tariffs on Canadian goods would be announced within a week.
Read the full coverage of Trump’s trade freeze with Canada
Canada’s Position: Mark Carney Responds
Canada’s Prime Minister Mark Carney confirmed that DST collection would continue as scheduled. Carney stated that while Canada supports global digital tax talks, it has the right to protect national tax sovereignty.
See how Canada defends its Digital Tax policy amid U.S. backlash
What Is the Digital Services Tax?
Passed under Bill C-59, the DST applies retroactively from January 1, 2022. It targets tech giants like Google, Amazon, Meta, Airbnb, and Uber. Unlike a traditional corporate tax, DST is based on revenue from digital services, not profit.
Trump’s Communication via Truth Social
Since re-election, Donald Trump has used Truth Social as his primary communication tool. The June 27 announcement made headlines around the world, reigniting trade tension just months after earlier tariff threats.
View trending news about Trump’s Truth Social activity on CTV News
Why It Matters to Canadians and Businesses
- Tech Companies: Will pay millions more in taxes, possibly changing pricing models.
- Consumers: May see slight increases in the cost of digital services.
- Canada–U.S. Trade: Could face long-term strain if tariffs escalate.
- Policy Future: Canada remains committed to the DST but is open to global negotiations.
Catch the latest TSX Index reaction to the trade news here
Related Topics on Everyana
- Canada Commits to NATO’s 5% GDP Defence Target — What It Means for You
- Tommy Genesis Sparks Global Backlash Over “True Blue” Music Video
What Happens Next?
- First DST payments are due by June 30, 2025
- Trump may announce retaliatory tariffs by early July
- Trade analysts expect more political friction and supply chain challenges
- Talks at the G7 Summit 2025 showed limited success in bridging differences
Final Word
This story is more than just a tax issue — it’s a frontline moment in the changing digital world order. As Canada pushes forward with its own laws and the U.S. retaliates, the outcome will influence trade, tech, and taxation around the globe.
Stay informed with Everyana’s news as we continue to track this evolving digital dispute.
