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Canada Drops DST

Canada killed its 3% Digital Services Tax just hours before the first payments were due, a move meant to coax Washington back to the table—but one that simultaneously revives the chronic Canada-US trade headache Ottawa thought it had left in 2018.

Finance Minister François-Philippe Champagne said the repeal is designed “to make vital progress” toward a wider economic-and-security accord Prime Minister Mark Carney and President Donald Trump now aim to seal by July 2025.

The about-face follows Trump’s abrupt decision on Friday to “terminate” talks over Ottawa’s plan to tax large digital platforms such as Amazon, Netflix, and Meta retroactively to 2022—an estimated $3 billion hit to US firms.

You can read more on the matter here.

What’s going on?

• Trump: Next Fed Chair Must Want to Cut Interest Rates (theDeepDive)

• Ottawa to curb steel imports with tariff rate quota on certain countries (FP)

• SEC Staffers Charged in $1 Million Insider Trading Scheme (theDeepDive)

• Trump will sign executive order to terminate Syria sanctions, White House says (Reuters)

• Andreessen Horowitz Bets Big On US “Mining Champion” To Counter China’s Critical Mineral Dominance (theDeepDive)

• Carney announces August 18 by-election, giving Poilievre chance for a seat in Alberta riding (Globe)

• Jane Street Co-Founder Says Activist Deceived Him Into Funding Arms Plot (theDeepDive)

• Senate races to pass Donald Trump’s flagship tax bill as deadline looms (FT)

• Poilievre Slams Liberals Over CIB’s $1B China Ferry Deal (theDeepDive)

• Harvard Violated Students’ Civil Rights, Trump Administration Finds (WSJ)

• You Might Be Inadvertently Broadcasting Personal Information on the Meta AI App (theDeepDive)

• Greenland awards Canadian miner permit for metal critical to defence industry (FP)

What’s the latest?

• DST: Canada has scrapped its planned digital services tax just hours before implementation, prompting the U.S. to resume trade talks. White House adviser Kevin Hassett confirmed negotiations will restart, with the goal of finalizing a new economic deal by July 21. The tax, which targeted major U.S. tech firms, was a key point of contention and had led President Trump to end talks last week. Markets reacted positively, hitting record highs amid broader optimism over upcoming trade agreements before July tariffs snap back to higher rates.

• WestJet: WestJet has signed an interline agreement with Saudia, enabling streamlined travel between Canada and Saudi Arabia. Passengers can now book single-ticket itineraries with through-checked baggage and one check-in. The deal offers single-connection access to Jeddah via Toronto, and to both Jeddah and Riyadh from London and Paris. WestJet says the partnership will boost tourism and business ties.

• Politics: The U.S. Senate began intense debate Monday on President Trump’s sweeping tax and spending bill, facing GOP defections and unified Democratic opposition. The $4 trillion plan includes permanent 2017 tax cuts, new tax breaks, $1.2 trillion in cuts to Medicaid and food stamps, and $350 billion for border security. A CBO analysis projects 11.8 million Americans would lose insurance and the deficit would rise by $3.3 trillion. Despite a flurry of proposed amendments, none passed with majority support, and the bill’s outcome remains uncertain.

• Markets: U.S. stocks climbed Monday, with the S&P 500 and Nasdaq hitting new highs as trade tensions eased after Canada scrapped its digital services tax. The S&P 500 rose 0.3%, the Dow gained 218 points, and the Nasdaq added 0.3%. Investors were buoyed by hopes of renewed U.S. trade deals and positive corporate news, including Oracle's strong outlook and merger progress for HPE and Juniper. Treasury yields edged down ahead of Thursday’s U.S. jobs report, while global markets were mixed.

• Crypto: Coinbase is pressuring Canada to accelerate crypto regulation, especially around stablecoins, as the U.S. advances legislation to legitimize the sector. Canada still classifies stablecoins as securities, limiting their use as payment tools. Coinbase argues clearer rules will support innovation, especially as stablecoins like Tether grow rapidly and partnerships like Shopify’s signal wider adoption. However, concerns remain over crime, financial instability, and whether Canada should lift its ban on interest-bearing stablecoins. The Bank for International Settlements warns of systemic risks if stablecoins grow without strong oversight.

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The stock market and stuff

• OpenAI’s TPU Switch Exposes the Soft Underbelly of Nvidia’s AI Boom (theDeepDive)

• Oracle shares hit record high on $30bn cloud contract (FT)

• Gold Leasing as Geopolitical Collateral (theDeepDive)

• Bezos Sells $5.4 Billion in Amazon Stock on Wedding Day (theDeepDive)

In the juniors

• Goldshore Launches 21,000 Metre Drill Program At Moss Gold (theDeepDive)

• Arizona Metals Reports 651 Million Inferred Pounds Of Copper Equivalent In Initial Mineral Resource Estimate (theDeepDive)

• ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production (theDeepDive)

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