Carney SCREWED Up trade talk with Trump! Liberals are happy
Episode Stats
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Summary
The Digital Services Tax is a 3% tax that was passed in the middle of trade negotiations between Canada and the United States and was supposed to be implemented on June 28th, 2024. Now, people are freaking out about it because they don't know how government works.
Transcript
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Hey guys, Wyatt Claypool here. Make no mistake about it, Prime Minister Mark Carney and his
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liberal government were the ones who screwed up trade negotiations with Donald Trump in the United
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States. Just because President Trump was the one who ended them does not mean that he was the
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problem. It was Canada's government that passed the digital services tax and then implemented it in
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the middle of trade negotiations when they had been telling us not to do it. We are currently
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trying to find a trade off ramp where both sides of the border would reduce their trade barriers so
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then we can trade more freely whether products are going from the U.S. to Canada or Canada to the U.S.
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It is actually very good for the average Canadian that tariffs go down on both sides of the border
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including us ending our dairy cartel and supply management system that is actually making basic
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products very very expensive for average Canadians by blocking out cheaper supplies not only just from
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the United States but from provinces that are not allowed to have big dairy industries the way that
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Quebec does. But I want to break a little bit this down and go to the online liberal reaction because
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there are people happy that the trade negotiations fell through as if this was like a big win for
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Canada to take off the United States an economy 10 times our size because I guess elbows up or
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something. It's good that we actually alienated our biggest trading partner because elbows up this is
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exactly what I voted for is what I'm hearing from a lot of people. And by the way I can prove to you that
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this was not a problem with the Trump administration. I'm going to get to this clip a little bit later
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but this is something that the Biden administration told us not to do. Don't implement the digital
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services tax. It's effectively a tariff on the U.S. because how many large tech firms does Canada
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have that engage in online services or selling of goods online? One, Shopify. It's like the biggest
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tech company in Canada. It's the only one in our top 10 largest businesses and after that it goes like
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really really far down before you're finding another digital services company in Canada. But before I get
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into it guys I just want to remind you that if you like the show make sure to like this video, subscribe
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to the channel if you are not yet a subscriber, and leave a comment on what you think about the whole
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trade situation. But now let's get to this clip from Fox News where a Trump administration official
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confirms that they had been telling the government not to implement this. And I want to get over also
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and I'm going to debunk the lie that well this has been in place for an entire year. Why are they only
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freaking about it now? People who are saying that don't know how government works but check this out.
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You know we spoke with the Prime Minister about this at the G7 meeting last week. We urged them to
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delay. You know they were setting a multi-billion dollar tax bill to our big high-tech companies
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on the 30th of June. And we said delay it for 30 days while we're negotiating and they refuse to.
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And the digital service tax is an extraterritorial really almost criminal act right. They're taxing
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American companies who don't necessarily even have a presence in Canada. And so and it's a three
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percent of revenue tax not profits revenue. And you know that's insane. I've been telling people that
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I technically screwed this up in my previous video about it where I said the tax was 10 percent.
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It's really that it has added 10 percent to the amount of tax that you know an Amazon or an Apple
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or any company like that Google. Them operating in Canada they pay 10 percent more taxes because
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they already pay corporate taxes of around you know I think it's something like 15 percent federally
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but then most provinces also have corporate taxes around 8 to 12 percent. So they already paid 25 to 28
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percent in corporate taxes and then we had three percent more for the dishonor of them having been
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an online business. That's stupid. It's just and so they're saying that they were telling them not to
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implement this and they did it anyways. They were giving them warning at the G7. I've been told by the
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media that Mark Carney was handling the G7 so smoothly. Oh my goodness he looks so dignified. He looks so nice
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in his suit standing there with other world leaders. He must be doing a good job when in fact
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the Trump administration behind the scenes was telling him don't do that stupid thing.
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They did the stupid thing and now we're in the stupid situation. But here is the digital services
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tax page on the government of Canada's website. People keep saying this was implemented last year.
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No it was not. This is what people are getting wrong. It says the digital service tax act received
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royal assent on June 20th 2024 and came into force on June 28th 2024.
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That does not mean it was implemented. It came into effect as if basically saying it is a real law
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that can be used. So if that wasn't first given royal assent and then I believe yeah the wording
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of it came into a force. Once it came into force now if they start implementing the tax it's legal.
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They only started implementing the tax in Canada and going back and retroactively taxing companies for the
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last few years. They're taxing companies to 2022. So if you're Amazon you're now paying three percent
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or even like a Canadian brand like Shopify you're paying that three percent for 2022, 2023, 2024.
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That's stupid and now you're going to have to pay it in 2025 as well. So the Trump administration
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obviously see this as a big tax grab. The Canadian government is basically just taking seven billion
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dollars from American tech firms mostly with that retroactive tax. It's insane and nobody should
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be like defending this. This is not how you treat a trade partner during trade negotiations when we're
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again supposed to be lowering barriers. But maybe this is just again the Trump administration freaking out
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about nothing. It's them being sensitive to something that nobody else would complain about.
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Okay well that's not true though and I'm about to show you a great clip that proves it. I am not a big fan
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of Premier Doug Ford in Ontario. Awful Premier not conservative at all. But here is him pointing out
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when Joe Biden was president that this is a stupid tax they should get rid of it because it's going to hurt us.
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We need the federal government to pause the implementation of the digital services tax. The DST
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is a bipartisan consensus in Washington. They are absolutely furious at us. I talk to Democrats. I
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talk to Republicans and they are furious. They're furious with Canada over even considering what they view
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as an unfair tax on American companies. Putting aside the fact that they'll never support bringing
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in the new tax no matter what it is we cannot put millions of Canadian jobs in our historic economic
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partnership with the U.S. at risk. I agree with Doug Ford there and again that was at the time when
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people were saying oh it's already been passed why are they complaining about it obviously it wasn't
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already passed. It was you know it was it hadn't been implemented yet it had been passed and he's
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saying do not implement repeal this thing it's bad and I actually have to agree with Doug Ford here
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because he's fully right even though it pains me to ever have to agree with the guy. There is this great
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thread right here by this one writer Dan Knight that I'm going to be linking in the description below.
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He does a great breakdown of just how catastrophic this whole thing was. I don't want to take any views
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away from him. If you want to read it I'll have it linked in the comments below but I want to move
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on to some other things. A lot of liberal reactions to what's going on here and so I like this this is
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actually a really key thing to note too of just how nasty the Canadian government has been. Table
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Salt here says major breaking. Canada is exploring a digital services trade agreement with the EU.
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This on the heels of a major trade spat with the US regarding the digital the digital services tax.
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Pretty soon we will be using Facebook the Czech social media app or Facebook. But and then Peter
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McCaffrey to that says from the Alberta Institute only Canada would be in would introduce a tax on
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something and then try to negotiate a trade deal around the tax. Just don't have the tax in the first
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place. But it's not even that. That's just silly. This is us implementing it on American companies and
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then saying European companies do you want to get out of it. What the heck. What why isn't the first
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thing we said is no no let the US will figure out a way of you know not taxing you. No they want the
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revenues because again if you guys weren't following it we have a 90 billion dollar deficit and Mark Carney is
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not a financial wizard. No matter how much liberals say it he is not a financial wizard. He is a fool
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who has spent too much money and now needs to try and generate revenues in any way he can. And the
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digital services tax was implemented at a time where he would have been the economic advisor to
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Prime Minister Justin Trudeau. This is probably Mark Carney's baby. He's not getting rid of it. He was
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the one who probably told them to do it in the first place. Because do you think Justin Trudeau that
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child was actually making any decisions for himself. He probably just did whatever Uncle Mark said
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whenever he was there or Uncle Mark's is probably a better way of putting it. But here we have
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Stephen Mayer and now we're getting into the liberal reaction. He's saying sovereignty is exercising
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lawful authority over your country in areas of national jurisdiction even it displeases the tech giants
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influential though they may be. This is not lawful authority in areas of your own national jurisdiction.
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Now I'm not saying it's unlawful. I'm just saying it's not your national jurisdiction exactly when
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you're taxing something that is so obviously mostly based in the United States. They're not taxing
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you know something where it's mostly domestically produced. They're not you know taxing it's not like
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some sort of food tax or gas tax or whatever because you know most of our oil and gas at least
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in western Canada is from western Canada. You know a lot of it's also from western Canada in the east
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they import elsewhere. But if you have a gas tax it's mostly a tax on a product already from here.
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This is a tax pretty much where 90 percent of it comes from outside of Canada. So it's effectively a
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tariff because nobody's unless you want to be obtuse and say well it's with Shopify is there. Okay
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Shopify is there. I understand. They're not even in the ballpark of how big Apple, Google, Amazon,
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all these other services are. And now they just pay three percent more corporate taxes. Oh it's only
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three percent Wyatt. Well Mark Carney ran in the last election on how great his one percent tax under
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fifty thousand dollars on income was. It's not even that good. It's a one percent tax reduction in a
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bracket where you don't even pay for the first eighteen thousand. You don't pay any tax on the
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first eighteen thousand you make federally. So you're getting one percent off of the tax rate
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for the rest of it up to fifty thousand dollars. That was deemed a very substantial tax reform by his
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campaign. And but it's not substantial. He's going to increase corporate taxes on tech firms by three
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percent. You are out of your mind if you don't think that this was a major problem for the Trump
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administration. Oh it's not that much money. Well when you're already being taxed to death
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obviously you're going to complain about it going up anything. This gator gum person says O'Toole is
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the most most reasoned voice in the conservative camp right now. O'Toole is not a conservative but O'Toole
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the disgraced former conservative leader says this is negotiation and can be expected at this stage.
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My advice to negotiators is to channel the golden five. Stay on target. Stay on target? On target for what?
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The ridiculous tax? We're going to stay on. What do you mean? If we use this as maybe a carrot that
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will get rid of it if you guys get rid of something then I guess that's something that the
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Carney government's doing. But they were already wanting to negotiate with us over lowering their
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tariffs if we get rid of our supply management system. Which again is good for the rest of the
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country. Unless you are paid by the dairy cartel in Quebec you should be in favor of dismantling it.
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It's bad for the overall Canadian dairy industry. We have Albertans being arrested for producing milk
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over quota. That's how stupid the system in this country is. Stephen Mayer reacting to Brian Lilly
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saying elbows up when Trump terminated the trade talk says Carney must give in to Trump's latest demand
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or take the blame for Trump's violation of the trade agreement he signed. What do you mean we're
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negotiating over a new trade agreement and also this tax is new. But everyone's acting like this
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is just something crazy out of nowhere that happened. Everyone has acknowledged Joe Biden didn't like
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the tax. Vice President Kamala Harris didn't like the tax. She would still be complaining about it if
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that Herodin was currently the president of the United States. We have Mark Levesque here saying I'm
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no fan of the DST the the digital service tax and supply management even less so. But to side with
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Trump and not realize that this is just another one of his multiple excuses. Fentanyl, the border,
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autos, lumber, the military and what else. The crap all over Canada is very disingenuous. No it's not.
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Again, Joe Biden said it was a problem. Again, Democrats said it was a problem. And now we're
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just saying well you want to side with Donald Trump. Well when he's right I'll side with him. My goodness.
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This guy Roddy here says oh wait those who dislike our prime minister are rooting for another country
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to win. How about you go f yourselves. I want our country to win and these guys are getting in the way
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of it. That's the problem. This guy Jeffrey Lascombe says 55 Canadians are being detained by ice.
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Stay home Canada. It's dangerous down there. I think they've got a bit they've gone a bit nuts.
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And this isn't about trade but this is just the stupidest anti-American talking point I've seen.
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This guy Coffee Time News says we've reached the point where it's on you if you're dumb enough to
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travel USA. I feel safer taking a swim in the Nile with the crocodiles and hippos.
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Um I've been to the United States a lot since Donald Trump has become president. I've been to
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Montana twice. I've been to Texas. I've been to Nevada. It's been very friendly. Do you know why
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people are getting arrested? Because they've done illegal things. The last guy the media highlighted.
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Oh man dies in ice custody. Yeah he's a drug trafficker. Well he's a Canadian who died in ice custody.
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He hasn't lived here since 1988. Good sir. He's not even a US citizen. He's just failed to ever become
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a citizen. Probably because he's a drug trafficker. And then he died. Like what do you think people
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he really broke his neck. He just died in prison. Because you know he's probably the type of guy
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who's also on drugs. This other person Phil Magnus says reminder that Trump does not have the
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constitutional authority to unilaterally set tariffs with Canada or any other country. All this bluster is
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contingent on an international uh in turn intentional misreading of trade statutes by the administration
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which is currently working through the appellate courts. No. It's an executive policy. If the
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executive can do anything in the United States it's raise tariffs. They can do that. They basically
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the executive can take military action and raise tariffs. That's like the two big things you can do
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as president. But we have these morons out there who think he doesn't have he doesn't have the
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authority to do this. He's got to go through congress. No he doesn't. That's not how that works. It's the
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the U.S. government gets to control the borders which means that they control trade. And and now
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we have these guys like Guy Felica here or Fili Kia or whatever. Someone told me I pronounced his
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name wrong. He's a wife abuser who advocates for safe supply. So I don't give a crap about him.
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But he says to everyone freaking out Maple MAGA about Trump ending trade talks of Canada. Just a
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reminder Mark Carney already mentioned months ago that he would be you that he would do just very thing.
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They're acting like this is what Carney ran on. Yeah he's saying that the relationship is over
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but he never marketed himself as the guy who's going to shoot a trade deal in the head himself.
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The old relationship we had with the United States based on deepening integration of our economies and
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tight security and military cooperation is over. It's my solemn promise that when President Trump
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threatens us again we will fight back. We will fight back with everything we have to get the best
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deal for Canada. See but that's what the guy and these people are missing to get the best deal for
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Canada. He didn't market himself as someone who's going to randomly impose a tax that's going to screw
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up the negotiations completely. Here's the last couple I'm going to look at. Pascal Engelhardt here says
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Canada can't even win a trade war against its own provinces but sure let's lecture the US on
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economics. I think that's a great comment there but then John Mark Taylor up here says the digital
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service tax can stay or it can go but that decision will be made by Canadians in the interest of
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Canadians. The best interest of Canadians is to get rid of it. It's obviously to get rid of it. A 3% tax
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on consumers is also what's going to happen here. It actually might even be more than 3% on consumers.
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Canadians are going to pay higher prices for this and it sunk the trade deal which Democrats and
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Republicans were telling us it would and now we're being like oh my goodness why did Trump do this to
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us? Why do we do this to ourselves? This is the problem in Canada. We will shoot ourselves in the
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foot and say oh my goodness why are why is reality so mean to us? Why doesn't reality just let us win?
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Reality is not going to let you win children. You actually have to react like adults in this world.
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You actually have to when that administration, two administrations, Biden and Trump told you don't
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do that you're basically just taxing our companies that don't really even headquarter in your country
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but now you want 3% of all their revenues or all at least all their revenues in your country.
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Um no don't do that if you want us to sign a trade agreement or if you guys don't want us to rip up
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Alaska. We do it anyways. They do what they said they were going to do and we're like oh my goodness
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how could this ever have happened to us? Who could who could have foreseen this? They must be some
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seer or medium to know that this was going to happen. My goodness okay one more one more we have here
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Peter Ratcliffe, forever Canadian, Trump the man of zero trade deals in 90 days can always reinstate
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USMCA and tell all the tell that he has a full functioning binding trade deal with Canada-Mexico
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agreement to sign and to sign by him. I think this is a little messed up. US trade the tariffs hurt US
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citizens and US companies. US is self-harming. It's them against them. Sorry is the digital services
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tax not hurting us? Is not having a trade agreement a proper one having tariffs between and the US
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helping Canadians? Again people liberals are celebrating this. By the way no one in the liberal
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government has said anything because guess what they know they messed up. They know they messed up.
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That's why they're saying not a word because they are probably begging them to come back to the table
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but also trying to keep the digital service tax on the table not wanting to get rid of it.
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These people the fact they haven't sounded off yet should tell you that they've been caught.
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Trump walked into the room said okay idiots we're not doing a trade talk anymore and now they're like
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what do we do? He's like it's like it's almost like they need to call up Justin Trudeau get him on
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the horn because maybe he's going to have more of a clue than the current chuckle idiots
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that are in the government. Anyways so like the video, subscribe to the channel,
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leave a comment. I'm about to go to a conference here but this was all very annoying. See you guys later.