NEW TARIFF IN TOWN: Trump Has Canada And Mexico Going In Opposite Directions

Who would have guessed that Mexico would turn out to be more agreeable than Canada when push comes to shove in border negotiations?

Maybe it was the up-close and personal view of how seriously the new government was taking border and immigration enforcement. Maybe it was his crackdown on criminals. Maybe they’re nervous about losing out on a crap-ton of remittance revenue.

Whatever the motivation, Mexico’s government, for all their tough Anti-American rhetoric, have swallowed any animosity they’ve had for Orange Gringo Bad long enough to discuss mutually agreeable terms on how to move forward. And it has paid off, with Mexico getting a 90 day extension as a reward for their good-faith negotiations with Trump’s negotiating team.

Canada, on the other hand, has stepped forward as a volunteer to prove Trump does not give idle threats, despite what the Schumer Clown Show would have us believe with their ‘taco’ nonsense.

While Canada’s statement in support of Palestinian statehood are getting a lot of attention, there are other reasons to say Canada has not been a good-faith actor in trade negotiations.

Congress, for example published this about a week ago:

In June 2024, the Canadian government enacted Bill C-59, which included a 3% digital services tax (DST)—retroactive to January 2022—on certain revenues of large digital services providers active in, for example, online marketplaces, online advertising, social media platforms, and the sale or licensing of user data. Digital services providers had been expected to make their first tax payments by June 30, 2025. On June 27, 2025, however, President Trump announced he would terminate bilateral U.S.-Canada trade discussions due to Canada’s DST. On June 29, the Canadian government announced that to resume talks, it would repeal its DST. The Canadian government has halted collection of the DST and will reportedly repeal the DST through legislation in the fall.

Some Members of Congress during the 118th Congress had argued that Canada’s DST would disproportionately affect U.S. firms and urged the Office of the U.S. Trade Representative (USTR) to consider retaliatory measures. The United States is home to several of the world’s largest digital services providers (e.g., Meta, Netflix), which are a large and fast-growing segment of the U.S. economy, with an estimated $225 billion of revenue and 293,000 workers in 2025. Following Canada’s policy shift, Members may assess whether and/or how to influence the executive branch’s approach to foreign DSTs.

And Ontario’s Premier (analogous to Governor) — who is best known as the less competent brother of the Conservative Mayor of Toronto (now deceased) who was a more effective mayor than most libs in spite of having a crack habit — thinks Canada’s best path forward is to ramp up hostilities with its largest trade partner.

Parts of Canada agree with him, including their new Globalist replacement for Trudeau, the guy with such great committment to the Canadian people and their wishes that he holds three passports. He’s every inch a Davos WEF insider. He ran for Prime Minister on an ‘elbows up’ platform pledging to ‘fight’ Trump.

That strategy could leave them both presiding over an ash heap of what was once an economy. Especially with Canada lagging far behind so many other countries in growth since, well, since Trudeau and his liberals took over from Harper in 2015.

That economy is in for an even rougher ride, especially if Canada’s vital auto manufacturing sector decides it makes more sense to come back to America where it can access US markets with zero penalty.

At a time when so many of the nay-sayers who saw only a downside to Trump’s tariff strategy are coming around to see that maybe he DID know what he was doing, Canada is rolling the dice and calling his bluff.

Today, Canada enters the ‘Find Out’ phases of the position they’ve taken, as tariffs are jumping to 35%… one of the highest tariff set on ANY US trading partner.