Canada canceled a digital service tax on U.S. technology companies this week in order to preserve trade talks with U.S. President Donald Trump, but another irritant, in agriculture, could be a bigger thorn in the ongoing negotiations. Analysts said ditching the digital services tax was politically easy for Prime Minister Mark Carney compared to even discussing Canada's supply management system that since the 1970s has tightly controlled supplies of dairy, eggs and poultry by restricting production and limiting imports through onerous tariffs. When Carney met with Trump, he said the two leaders were aiming for a new economic agreement by July 21. Trump, however, threatened in a Truth Social post to derail talks and impose new tariffs due to the digital service tax, which had been scheduled to take effect on Monday. In the same post, Trump also attacked tariffs on dairy products. Carney and Trump both confirmed negotiations had restarted with the removal of the tax.
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