Canada is working on a new tax called the Digital Services tax, and it could cost Apple and other tech giants billions.Canada's legislation was first proposed in 2021 as an interim measure, following a statement from the G20 . The G20 countries are working towards creating a tax on profits made by global tech companies through services.
The US objects to that digital service tax from the Canadian government. It claims it is discriminatory against US-based companies. Well, nearly all big tech players, including Apple, Microsoft, Google, Amazon, and Meta are all based in the U.S. The dispute may lead to retaliatory US tariffs on imports from Canada if an agreement isn't reached. The US has prepared tariffs on seven other countries that have passed DST legislation , but those are currently suspended pending the outcome of negotiations.
In my opinion, Canada's Digital Services tax is a bold move to hold tech giants accountable, but it risks fueling tensions with the U.S. I think Canada should work to avoid unnecessary conflict that could harm both economies. But of course, such things are hard to regulate, so that's why negotiations would last for a long time before an agreement that suits both parties is found.