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Subject: Trade Relations with the US
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Dear Prime Minister Carney and Members of the Liberal Party,
I am writing to commend and thank your government for rescinding the Digital Services Tax (DST) on June 29, 2025, a decision that averted further escalation of trade tensions with the United States and enabled the resumption of critical trade negotiations. This pragmatic step demonstrates your commitment to prioritizing Canadian workers, businesses, and economic stability.
The DST, which imposed a 3% levy on digital companies’ revenue from Canadian users, led to U.S. President Donald Trump’s abrupt termination of trade talks on June 27, 2025, threatening new tariffs on Canadian goods. With $762 billion in annual bilateral trade at stake, your swift action to halt the tax collection, due to start June 30, and commit to repealing the Digital Services Tax Act has restored momentum toward a new trade deal by July 21, 2025. As U.S. Commerce Secretary Howard Lutnick noted, this move removed a “deal breaker” for negotiations, a sentiment echoed by Canadian business groups like the Canadian Chamber of Commerce, which praised the decision for avoiding higher costs to consumers and investors.
I encourage your government to:
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Strengthen Canada-U.S. trade relations by pursuing a mutually beneficial trade agreement that reduces tariffs and enhances economic security.
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Engage businesses and stakeholders to ensure trade policies support jobs and affordability.
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Promote multilateral tax solutions to address digital economy challenges without straining trade partnerships.
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Thank you for your leadership in de-escalating this crisis. I look forward to continued progress in building a stronger economic partnership with our closest ally.
Sincerely,
[Your Full Name]
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