President Donald Trump signed another executive order on Thursday authorizing reciprocal tariffs and his White House singled out Canada’s digital services tax as one such trade irritant.
The White House sent out a document calling Canada and France’s digital taxes as “unfair” for taxing American companies.
The Trudeau government’s three percent tax came into effect over the summer, which requires large tech businesses to pay tax on revenues earned through engaging online users in Canada.
The controversial policy has stirred the ire of U.S.-based lobby groups, and the Business Council of Canada and Canadian Chamber of Commerce have long warned it would invite retaliation from the U.S.
Trump’s latest executive order says the U.S. will counter against a sweeping range of irritants, including subsidies and “burdensome regulatory requirements.”
It also singles out a suite of non-tariff trade barriers, ranging from human and animal health trade requirements to government procurement policies, intellectual property protection and digital trade barriers.
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