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Well, well, well… look who just folded.

After weeks of big talk and puffed-up chests, Canada just blinked. In a stunning about-face, our polite little neighbor to the north has rescinded its digital service tax on American companies.
Look:

And it only took Canada 24 hours to buckle.

Look:

Why, you might ask… Well, it’s because President Trump called them on it. He made it crystal clear: screw with US tech, and trade talks are over. Period. And he walked away. Here’s what President Trump posted on Truth Social after pulling the plug on all trade talks.

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Canada’s economy would have been thrown into a recession faster than you can say “pass the maple syrup.”

And they know this, which is why they caved so fast.

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This is what real negotiating power looks like. Trump isn’t just making deals; he’s reshaping the global economy with the kind of bold, unapologetic strategy that no president before him has had the guts (or brains) to do. While the media mocked him and the left clutched their “precious democracy” pearls, Trump was building real leverage. And now, countries are lining up to fall in line. Canada is the latest example.

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Just days before they were set to start taxing American tech giants, Canadian officials suddenly pumped the brakes. They’re now claiming they want to get back to the table and work out a “mutually beneficial” arrangement. But the truth is, they didn’t come to this decision from the goodness of their heart. Trump cornered them. And this retreat proves that his America First agenda is working. The art of the deal, indeed.

NBC News:

Canada has walked back on its digital services tax “in anticipation” of a mutually beneficial comprehensive trade arrangement with the United States, Ottawa announced Sunday night, just one day before the first tax payments were due.

The move comes after U.S. President Donald Trump announced over the weekend that he will be “terminating ALL discussions on Trade with Canada” in response to Ottawa’s decision to impose a digital services tax on American tech firms.

“Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Canadian Prime Minister Mark Carney said in the statement.

The first payments from Canada’s digital services tax, which was enacted last year and applies retroactively to 2022, were initially set to be collected Monday. The tax would have applied to both domestic and foreign tech companies, including U.S. giants such as Amazon, Google and Meta with a 3% levy.

Of course, Canada couldn’t just walk it back quietly. They had to puff up their chest yet again and pretend like this was all part of some bold, strategic master plan after getting politically “pantsed” on the world stage.

Their finance minister tried to spin the retreat as some visionary leap toward “prosperity” and “mutual progress,” as if President Trump didn’t just force their hand like a pro. And in true bureaucratic fashion, they still tossed in a little face-saving bluster, claiming they’ll take “as long as necessary” to get a deal.

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Sure, guys. Take all the time you need… just don’t forget who’s actually running the show. The NBC News piece goes on:

This decision from Ottawa was an about-turn from Canadian officials earlier this month, who said they would not pause the digital services tax, despite strong opposition from the U.S.

Canada’s Minister of Finance and National Revenue Francois-Philippe Champagne added, “Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.”

However, the statement from Canada’s finance ministry also said that Carney “has been clear that Canada will take as long as necessary, but no longer, to achieve that deal.”

We’ll leave you with this spot-on illustration by Ben Garrison. It’s a perfect snapshot of how the world looks now that Trump’s America First trade agenda is back in the driver’s seat.

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