Canada’s Digital Tax Isn’t Picking a Fight. It’s Protecting What Matters.

There’s been a lot of noise about Canada’s Digital Services Tax. That it’s risky. That we’re provoking Donald Trump and risking retaliation from the U.S. That we should’ve just stayed quiet. But in truth, the DST isn’t a threat, it’s a shield. It’s a policy built to protect Canadian businesses, reinforce fairness, and signals that our economy isn’t for sale. This is what it looks like when our country acts in our own long-term interest and does it with clarity and confidence.

Some are calling the DST a misstep, a diplomatic “own goal” and a self-inflicted wound.

But I don’t see Canada’s Digital Services Tax as any of those things. It’s a smart, targeted policy that ensures companies who are making money from Canadians actually contribute here too.

The DST isn’t a tax on consumers. It’s a tax on the revenue that large global tech companies earn from Canadian users, whether through online ads, digital platforms, or selling our data. If you’re profiting from Canadian attention, clicks, and content, the DST says you should then pay some tax in Canada.

How can that be remotely controversial? It’s common sense. And it’s already been adopted in countries like France, the UK, and Italy. In fact, Canada waited longer than most countries, holding off for years in hopes that a global agreement would take shape. But progress stalled and it hasn’t happened. Meanwhile, Canadian companies keep paying into the system while the big global players don’t.

If you’re a Canadian tech entrepreneur paying taxes, and global companies can come in, take local revenue, and pay no local tax, how is that remotely fair? How is that a level playing field?

So what was Canada supposed to do? Keep waiting? Keep giving global tech firms a free pass?

The DST applies only to the largest players. That means companies earning at least €750 million globally and more than $20 million in Canadian digital services. It’s focused, reasonable, and expected to bring in over $7 billion over five years. That’s revenue we sure can use to support housing, innovation, health care, and the infrastructure Canadian businesses rely on.

Of course the U.S. doesn’t like it. That shouldn’t come as a surprise. And it’s no surprise that Donald Trump has threatened tariffs in retaliation. But let’s be honest. This isn’t really about the DST. It’s about power, distraction, and posturing. If we back down every time someone raises their voice, or doesn’t like what we do to fairly protect ourselves, then we’ll never build a country that stands confidently on its own terms.

This isn’t about punishing American companies. It’s about fairness for Canadian businesses and taxpayers. Every entrepreneur I know pays their share. Every small business follows the rules. Big Tech shouldn’t be the exception.

And when a global solution is finally in place, Canada’s DST is designed to be phased out. We’re not looking to go it alone forever. But until then, we need to stand firm.

The real own goal would be doing nothing and letting our tax system stay skewed. Having our tech businesses compete on uneven ground goes against the values we claim to protect.

The DST is a small but necessary step toward restoring fairness in a digital economy that urgently needs it.