WASHINGTON, DC, JUNE 17, 2025 – The Canadian American Business Council (CABC) continues to oppose Canada’s Digital Services Tax (DST).
As we’ve long stated, the DST has negative implications for not only U.S. companies, but also Canadian consumers and our broader bilateral trade relationship. Canadian households and businesses are already facing challenges from inflation, supply chain disruptions, and affordability issues. Introducing a new digital tax that could drive up the cost of everyday services—like food delivery, ridesharing, and vacation rentals—would only add to their burden. Meanwhile, small and medium enterprises will face negative trickle-down impacts, as the tax stifles their ability to grow, scale, and innovate domestically.
Canada’s plan to collect the DST on June 30, risks creating unnecessary tension between two of the world’s closest trading partners at a time when economic cooperation is most important. The strength of the Canada-U.S. economic relationship has always rested on mutual respect and shared commitment to fair competition. The DST undermines both principles.
We are at a pivotal moment in the relationship, and the way forward calls for constructive dialogue that strengthen, rather than strain, our longstanding partnership. We continue to call on the government to suspend DST’s implementation and eliminating its retroactive provisions.
About the CABC: Established in 1987, the Council is the leading non-profit, non-partisan, issues-oriented organization dedicated to fostering dialogue between the public and private sectors in Canada the US. Members are key business leaders and stakeholders from both sides of the border ranging from entrepreneurs to best name brands in the world. Collectively, CABC members employ about two million people and have annual revenues of close to $1.5 trillion. For more information about the CABC and its leadership team, please visit our Who We Are section.
