Canada is reportedly considering scrapping its planned digital services tax (DST) due to pressure from the United States, particularly threats of tariffs from former President Donald Trump. The DST, aimed at taxing revenue generated by large tech companies operating in Canada, disproportionately affects US-based firms. Trump's tariff threats, intended to protect American interests, appear to be a significant factor in Canada's potential reversal. This move highlights the ongoing tension between national tax policies and international trade relations, particularly in the digital economy. Scrapping the DST would be a win for US tech giants, allowing them to avoid additional taxation in the Canadian market.