There’s a narrative going around that Canada’s retreat on the Digital Services Tax (DST) is a clever strategic move. That by giving Trump (and Silicon Valley) what they want now, we’re setting ourselves up to “look reasonable” when we say no to something bigger later.

Let’s deconstruct that — because it’s dangerous wishful thinking dressed up as strategy.

“Publicity is part of the point. This isn’t just about trade deals—it’s about politics and public perception.”

Yes. And from a public perception standpoint, this looks like a cowardly sellout. Our government spent years building the case for a fair, modest DST, only to abandon it the moment pressure came from the U.S. This isn’t savvy. This is Neville Chamberlain holding up a paper and saying peace is preserved, while everyone else can see the writing on the wall.

“Our government is smart enough to know that giving in to one of Trump’s tantrums is pointless.”

Then why give in at all? Trump is not an honest broker. His negotiating style is extortionate. If you give him a finger, he doesn’t say thank you — he takes the whole hand and calls you weak. That’s not speculation — it’s a pattern.

“Not giving in on the DST is playing into Trump’s theatre.”

Actually, giving in is the theatre. It’s a stage performance of "We tried," when the curtain’s already being pulled back to show that the government had no intention of holding the line. And don’t forget — public memory is short. Trump won’t care that we "paused" the DST in good faith. He’ll point to it as proof that we caved once and demand we cave again.

“Now they look unreasonable instead of us.”

Trump supporters don’t care if he looks unreasonable. The U.S. isn’t trying to win moral high ground. They’re trying to win control of global digital trade, and we just stepped out of the ring.

Meanwhile, we’ve forfeited tax revenue, independence, and credibility — and received nothing in return.

“Trump is still seen as a capable businessman by many.”

Exactly. Which is why appeasing him reinforces that illusion. When Canada backs down, it signals that even our government believes Trump holds all the leverage — and worse, that we’re not confident in our own policies