The breakdown came from yet another daft, backstabbing move by Mark Carney to enforce a Digital Services Tax (DST) of 3% on American companies like Amazon, Airbnb, and Google, with a retroactive payment of $2B due immediately.
This tax had first been conceived by Justin Trudeau. It has faced major opposition ever since across the board, including from the Business Council of Canada, who has said, “We warned this DST would endanger our relationship with our top trading partner.”
In response, President Trump has canceled all trade negotiations with Canada.
We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period. Thank you for your attention to this matter! – President Trump, June 27, 2025 at 1:44 PM
To date, Carney has yet to respond.
For anyone thinking this gives Canada leverage, think again. President Trump has already said he will match any tariffs and taxes with reciprocal tariffs and taxes. Canada also risks these essential digital services going dark in Canada!
In fact, Canada’s exports to the USA account for approximately 20% of its GDP, while US exports to Canada represent about 1.7% of its GDP. This makes Canada roughly 12 times more reliant on the US market than the US is on Canada. The US could potentially offset the loss of Canadian exports within a few quarters of economic growth.
Earlier today, President Trump had discussed the issue further.
“Maria Bartiromo: You said you’re stopping all trade discussions with Canada?
President Trump:
Until such time as they drop certain taxes, yeah.
People don’t realize Canada is very nasty to deal with. They have charged our farmers up to 400%…
Canada is a very tough country to deal with, and I love Canada. USMCA is no good if they cheat. There have been things going on that we don’t like and things going on where they took advantage. Hopefully we’ll be fine with Canada. I love Canada. Frankly, Canada should be the 51st state. It really should. Canada relies entirely on the United States. We don’t rely on Canada.”
Even if Prime Minister Mark Carney negotiated new trade deals with each G7 member other than the U.S., namely France, Germany, Italy, Japan, and the United Kingdom, the combined economic size of these countries would not match that of the United States. Based on 2024 IMF data, the GDP of these five G7 nations totals approximately $17.5 trillion, while the U.S. GDP stands at around $28.8 trillion. This means their combined economic output is only about 61% of the U.S. GDP, falling short by roughly $11.3 trillion, highlighting the significant gap in economic scale.
As I’ve repeatedly warned, Canada cannot afford to be “the last country to negotiate a trade deal” because “the last will absolutely lose” (Eric Trump, X, April 3, 2025). Carney’s missteps have made an already precarious situation far worse.
Contrast this with the United Kingdom, Canada’s mother country, which has wisely seized the opportunity to secure a trade deal with the U.S. early on. The UK’s foresight should be commended. Meanwhile, Canada—despite being the second-smallest G7 economy—has failed to follow suit, blinded by arrogance.
The reason we report on this is because these trade issues are having a direct effect on property values by hurting consumer confidence in our real estate market. Too many sit back and watch the erosion of their property values, trusting in a government dedicated to bankrupting your family. These acts and decisions are not those that align with Canadian values.
By raising awareness, it is our hope to affect needed change.
For our clients:
“Information is the key in turning uncertainty into opportunity”. – Luke Dalinda
We act at the Speed of Need, delivering timely market insights to optimize the success of your condo sale.
In breaking this news on X.com today with our news partners, our reporting has achieved, to the time of this post, over 88,000 views, 2,100 likes, and over 212 comments.
Thank you to those who have reached out to thank us for our coverage on the Canada and US trade issues. We do not charge a subscription fee for our work but sincerely appreciate those who take a second to offer their thoughts and thanks. You can always email us at: LDALINDA@DALINDA.NET
Be sure that you SUBSCRIBE to this blog to be the first to know of new listingseven before they hit MLS! Stay tuned. The Subscribe link is to the left of this post.
Palace Place, 1 Palace Pier Court, and Palace Pier, 2045 Lake Shore Boulevard West, in Humber Bay Shores.
