“Canada Won’t Be Bullied”: Carney Fires Back After Trump’s ‘Blatant Attack’ Accusation

Tensions between Canada and the United States flared this week after former U.S. President Donald Trump accused Canada of launching a “blatant attack” on the United States economy — a claim that prompted a swift and unflinching response from Canadian Prime Minister Mark Carney.

The dispute centers around Canada’s decision to implement a 3% digital services tax (DST) on large multinational technology companies, a policy that directly impacts major U.S. firms such as Google, Amazon, Meta, and Apple. Trump, who is seeking a return to the White House in November, blasted the move in a post on Truth Social, calling it “a disgraceful and targeted hit job on American innovation.”

“This is a BLATANT ATTACK on American companies,” Trump wrote. “Canada is exploiting our leadership in the digital space to fill its own pockets. If this isn’t reversed, we will hit them hard — and fast.”

Within hours, Prime Minister Carney responded during a press conference outside Parliament Hill.

“Canada sets its own tax policies in line with international norms and the interests of Canadians,” Carney said. “We don’t take trade lessons from those who treat threats like diplomacy. This isn’t an attack — it’s taxation of digital profits made in Canada. Plain and simple.”

A Diplomatic Chill Amid Trade Tensions

While Canada and the U.S. have had their fair share of trade disagreements over the decades, this latest escalation arrives at a particularly sensitive moment.

The new DST, which applies retroactively to revenue generated since 2022, has long been in the works. Canada delayed implementation to allow for a multilateral agreement through the OECD, but with talks stalled, Ottawa moved ahead on its own.

Washington, however, sees the tax as disproportionately aimed at U.S. firms.

Trump, never shy about using tariffs as leverage, threatened to impose punitive duties on Canadian exports ranging from lumber to auto parts if the DST isn’t repealed.

“We made it clear: this tax is hostile and will not go unanswered,” Trump said during a campaign rally in Ohio. “Canada’s going to feel it where it hurts — the border.”

Carney, however, refused to take the bait.

“If anyone thinks threatening Canada will change our principles, they’re sorely mistaken,” he said. “We’ll always defend fair taxation and an open, rules-based trading system.”

Carney’s Measured Firmness: A New Tone for Ottawa

Since taking office in early 2024, Mark Carney has brought a technocratic tone to Canada’s foreign policy, blending economic realism with quiet resolve. A former governor of both the Bank of Canada and the Bank of England, Carney has often emphasized fiscal sovereignty, climate accountability, and what he calls “resilient globalization.”

This latest confrontation offered a stark contrast to past episodes, such as the heated 2018 G7 summit when then-Prime Minister Justin Trudeau and Trump clashed over tariffs.

Unlike Trudeau’s more diplomatic handling, Carney’s response was notably more assertive.

“Canada won’t be bullied into dropping a tax that aligns with global norms and targets companies making billions from Canadian consumers without paying their fair share,” Carney told reporters. “That’s not how a mature trading relationship works.”

Political Calculations on Both Sides

Analysts suggest both leaders are speaking not just to each other, but to their domestic audiences.

Trump’s aggressive rhetoric aligns with his America First platform, which thrives on visible, nationalistic posturing. Targeting a “friendly but firm” ally like Canada allows him to demonstrate toughness without sparking a geopolitical crisis.

Carney, for his part, is navigating a delicate balance. While he seeks to maintain crucial economic ties with the U.S., he must also show Canadian voters that he can stand firm in the face of American pressure.

“There’s political capital in standing up to Trump,” says Dr. Isabelle Fournier, a political economist at the University of Ottawa. “Canadians remember the trade wars of Trump’s first term. Carney is showing he’s not afraid to push back.”

What’s at Stake Economically?

The U.S. remains Canada’s largest trading partner, with more than $2 billion in goods and services crossing the border daily. A breakdown in negotiations over the DST could lead to retaliatory measures on both sides, threatening supply chains and investment flows.

The Canadian Chamber of Commerce has called for “constructive dialogue,” warning that escalating rhetoric could “jeopardize critical industries on both sides of the border.”

However, many Canadian lawmakers back the tax.

“Why should Canadian bookstores pay taxes while Amazon reaps billions tax-free?” asked NDP leader Rachel Singh. “Carney’s right — this is about fairness, not protectionism.”

A Broader Global Shift

Canada isn’t alone. France, the UK, and India have all introduced their own digital taxes in recent years, prompting U.S. trade authorities to launch multiple investigations under Section 301 of the Trade Act.

Trump’s renewed opposition to such taxes may signal a broader shift if he regains office in 2025. Global negotiations at the OECD level — which aimed to replace patchwork DSTs with a single global agreement — may collapse entirely.

Carney has warned of this.

“If the U.S. withdraws from the OECD framework under a second Trump term, countries like Canada will have no choice but to pursue our own paths,” he said.

Conclusion: More Than a Tax Fight

This isn’t just a spat over dollars and cents. It’s a test of how democratic allies navigate diverging priorities in a changing global economy.

Whether Trump’s threats turn into real economic retaliation or remain campaign posturing remains to be seen. But Carney’s unambiguous response suggests Canada is preparing for either outcome.

“We value our partnership with the United States,” he said, “but that doesn’t mean we fold when they raise their voice. Canada will always stand up for itself — respectfully, but resolutely.”