The Canadian Economic Winter

[paxamericana]

https://www.cnn.com/2025/06/27/business/trump-breaks-off-canada-trade-talks

Due to Canadian tax on US digital services ;largely affecting Meta, Apple, Google, Amazon and Microsoft, Trump will now increase tarriff on all Canadian exports to the US. 

Truely a historic turn of event for Canada. This will further contribute to brain drain and siphoning of young talents and entruepenuer into the United States due to trade barriers. 

The domestic consumption in Canada is too weak to sustain local industries, job loss and recession will ensue leading to Stagflation. Without jobs, it will be harder to attract migrants. 

Edited June 28, 2025 by paxamericana

[LinkSoul60]

11 hours ago, paxamericana said:

https://www.cnn.com/2025/06/27/business/trump-breaks-off-canada-trade-talks

Due to Canadian tax on US digital services ;largely affecting Meta, Apple, Google, Amazon and Microsoft, Trump will now increase tarriff on all Canadian exports to the US. 

Truely a historic turn of event for Canada. This will further contribute to brain drain and siphoning of young talents and entruepenuer into the United States due to trade barriers. 

The domestic consumption in Canada is too weak to sustain local industries, job loss and recession will ensue leading to Stagflation. Without jobs, it will be harder to attract migrants. 

So what you’re saying is that somewhat the reverse of the US….  Who has the domestic consumption but the lack of infrastructure , industry and supply chain to fill the demand without trade.

Canada may see a recession and stagflation, same as the US will if both economies keep tracking in the same direction.  

DST bullsh*t from Trump is nothing more than his typical so-called negotiating style.  The incompetent child and his equally inept trade negotiators forgot, or didn’t even know this was slated to come into effect.  Absolutely comical that this band of idi)ts is negotiating for the largest economy on the planet.  Embarrassing is probably a more fitting word….

[paxamericana]

14 minutes ago, LinkSoul60 said:

So what you’re saying is that somewhat the reverse of the US….  Who has the domestic consumption but the lack of infrastructure , industry and supply chain to fill the demand without trade.

No this has to do with immigration law. The imported labor is much cheaper hence these companies rely on using Canada as a immigration hub while skirting US law. The US has talent and infrastructure to support those buisnesses. These companies are just trying to lower their cost by not hiring US talent. If anything, they're building a loopholel for themselves and Canada through counter tariff measure is closing the loophole. 

[LinkSoul60]

1 hour ago, paxamericana said:

No this has to do with immigration law. The imported labor is much cheaper hence these companies rely on using Canada as a immigration hub while skirting US law. The US has talent and infrastructure to support those buisnesses. These companies are just trying to lower their cost by not hiring US talent. If anything, they're building a loopholel for themselves and Canada through counter tariff measure is closing the loophole. 

Not sure which companies or sectors you're referring to but nobody is using Canada as an immigration hub.  The US has enough immigrants for companies to support those low paying jobs and has the H-1B visa for non-immigrants in specialty occupations. Tariffs are simply a tax imposed by one country to another for goods and services imported....and has nothing to do with immigration laws.

[paxamericana]

1 hour ago, LinkSoul60 said:

Not sure which companies or sectors you're referring to but nobody is using Canada as an immigration hub.  The US has enough immigrants for companies to support those low paying jobs and has the H-1B visa for non-immigrants in specialty occupations. Tariffs are simply a tax imposed by one country to another for goods and services imported....and has nothing to do with immigration laws.

It absolutely has everything to do with immigration law as Microsoft lost a lawsuit against providing employee benefit to their H1B employees and its subcontractors. Don’t forget the main underlying theme, cheaper labor cost. Digital services can be done inside there United States unless there are compelling reasons to do so in Canada, which I would argue is cost savings. This is where your universal healthcare system is being leveraged by the US companies.

Edited June 28, 2025 by paxamericana

[Aristides]

21 hours ago, paxamericana said:

https://www.cnn.com/2025/06/27/business/trump-breaks-off-canada-trade-talks

Due to Canadian tax on US digital services ;largely affecting Meta, Apple, Google, Amazon and Microsoft, Trump will now increase tarriff on all Canadian exports to the US. 

Truely a historic turn of event for Canada. This will further contribute to brain drain and siphoning of young talents and entruepenuer into the United States due to trade barriers. 

The domestic consumption in Canada is too weak to sustain local industries, job loss and recession will ensue leading to Stagflation. Without jobs, it will be harder to attract migrants. 

This  is about US companies running advertising in Canada paid for by Canadian companies and not paying tax on the income. Europe has done the same thing. 

[CdnFox]

3 hours ago, Aristides said:

This  is about US companies running advertising in Canada paid for by Canadian companies and not paying tax on the income. Europe has done the same thing. 

But they're not really running them in Canada are they. Canadians go out on the web to American servers and consume the product there.

And I think we can safely say that just because Europe does something doesn't make it a good idea by any stretch of the imagination

So if I phone call a travel agent service in the states and ask them to book me room at a hotel and rent me a car and they do it and I pay them for their services, they pay no tax in Canada. How is that different? I consumed their services here. At least as much as if I was looking at something on the web.

As I said in another thread I have no problem if the government wants to look at a GST cost regardless of the country of origin for people purchasing services such as advertising. And the Americans would have a tough time complaining because any advertising was being charged GST, it's a good in service tax. It would be paid by the Canadian corporations purchasing the advertising and you would have to decide whether or not that was a really good thing to do, introduce yet another tax to business. But if you were going to do it at all, that's probably where you should

The idea of double taxing businesses, once in the states and once in Canada, is patently ridiculous. And the fact that Europe is doing something patently ridiculous given their absolutely astounding history of doing things that are patently ridiculous over the last few centuries is no endorsement of it

[LinkSoul60]

20 hours ago, paxamericana said:

It absolutely has everything to do with immigration law as Microsoft lost a lawsuit against providing employee benefit to their H1B employees and its subcontractors. Don’t forget the main underlying theme, cheaper labor cost. Digital services can be done inside there United States unless there are compelling reasons to do so in Canada, which I would argue is cost savings. This is where your universal healthcare system is being leveraged by the US companies.

Disagree...this is about DST and tariffs which are taxes.  Immigration is a process for individuals to become residents or citizens of a country. Two entirely different things. If MS lost a law suit about benefits to H1B employees that's a labor issue, not an immigration issue.  Cheap labor has nothing to do with this either....this is only about taxes.

Not sure what you mean by US companies leveraging Canadian healthcare, but private equity has been investing in the healthcare industry for many years and on both sides of the border owning and/or operating everything from hospitals, physician practices, medical services, to long term care facilities. Would suggest that any leveraging of the healthcare industry is more prevalent in the US with private equity owning approximately 30% of private and for profit hospitals, and running as a business which has an impact on the cost, access and quality of care.

Off on a tangent.... this is about Trump and his equally inept trade negotiators trying to leverage DST in tariff/trade discussions.  Immigration and healthcare are not part of those discussions......