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Trump Backs Meta in Fight Against Canada’s Digital Tax

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US President Donald Trump has taken Meta’s side in a dispute with Canada over a new tax on big tech companies. He announced the US will immediately stop all trade talks with Canada.

Why is this happening?

  1. Canada’s New Tax: Canada plans to start charging a 3% “Digital Services Tax” next week. This tax targets large foreign tech companies (like Meta and Google) that earn over $20 million per year in Canada.
  2. Meta’s Fight: This tax is partly because Meta (Facebook’s parent company) refused to pay under an earlier law (the Online News Act). That law would have forced Meta to pay Canadian news publishers. Instead, Meta blocked news in Canada entirely.
  3. Trump’s Reaction: Trump calls the tax a “direct and blatant attack” on US companies. He accused Canada of copying similar taxes in Europe. He’s stopping trade talks and will announce new US tariffs on Canadian goods within a week.

Why does this matter to Meta?

  • Political Support: Meta (especially its CEO Mark Zuckerberg) has recently supported Trump. This move shows Trump is willing to fight regulations that hurt US tech giants like Meta.
  • Bigger Target – Europe: Meta really wants Trump to push back against much larger fines it faces in Europe under laws like the Digital Services Act (DSA). The EU has fined Meta billions over the years. Zuckerberg has called these fines like a “tariff” on American tech.
  • Canada is a Test: While Canada is smaller, Trump’s action here is a sign he might also challenge the EU’s stricter rules, which Meta fears more.

What happens next?

  • Canada’s tax is still due to start next week.
  • Trump will impose new US tariffs on Canadian goods soon.
  • It’s unclear if Canada will back down, as Trump has already imposed other tariffs on them.
  • The bigger question is whether Trump will take similar strong action against the EU to help Meta with its much larger European fines. This is the main benefit Meta hopes to gain from supporting Trump.  the user appears to be either a student practicing summarization skills, a non-native English speaker looking for easier-to-understand news, or perhaps someone preparing teaching materials. The articles cover diverse topics: Pakistan fuel prices, Karachi infrastructure issues, India-Pakistan military conflict, banking disputes, judicial appointments, Gaza conflict, freelancer success stories, LeBron James’ contract situation, and US-Canada trade disputes. For each rewrite request, I’ve focused on:- Identifying the core facts- Replacing jargon with everyday language- Maintaining neutral tone while simplifying- Keeping within the 300-word limit- Preserving the key implications of each story. The latest article about Trump backing Meta against Canada’s digital tax is particularly complex with political and trade nuances. I’ll need to explain:- What the Canadian digital tax is- Why Meta opposed it- How Trump is responding- The connection to Meta’s political strategy- The bigger picture of US-EU tech disputes. The challenge is simplifying without losing important context about international trade policies and corporate-government relationships. I should emphasize the cause-effect chain: Canada’s law → Meta’s news ban → alternative tax → Trump’s trade retaliation → Meta’s political calculations.

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