A trade deal with Trump demands it

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For a while there, things were going so well. Prime Minister Mark Carney — aka “the Trump whisperer” — had morphed from critic to texting buddy of the U.S. President. Over the past three months, Carney had been chatting with Donald Trump, building backchannel goodwill. After the successful G7 summit in Kananaskis, Alta., hopes were high that Ottawa would strike a deal with Washington in 30 days, and that the rhetoric of making us the “51st state” had finally been retired.

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Until last Friday, when everything fell apart.

That’s when President Trump abruptly cut off trade negotiations with Canada over our three per cent digital services tax, set to take effect June 30. Aimed at U.S. tech giants Amazon, Meta, Google and AirBNB, the tax was retroactive to 2022 and would have cost them an estimated $2 billion in back payments. The tech bros howled, the president barked, and Carney blinked. Sunday night, he backed down and cancelled the tax: Monday morning, U.S. Commerce Secretary Howard Lutnick thanked him for the climbdown, as did the Canadian Chamber of Commerce. Negotiations were back on.

But if you thought that was the last bump in the road, you couldn’t be more wrong. In