Deputy Prime Minister Chrystia Freeland made it clear that the country’s digital services tax will not be up for negotiation with the U.S., following president-elect Donald Trump’s threat to impose 25 per cent tariffs. “Canada will not accept not being on the level playing field with our partners and allies,” Freeland told reporters. She pointed out that many of Canada’s allies, including the U.K., France and Italy, have similar taxes. (The Logic)

Talking point: The Liberal government has remained silent on whether the tax is up for negotiation since Trump’s tariff threat, but some economists have floated the possibility of it being something worth conceding. Trump’s tariff threat is an “opening gambit in a larger game,” the Canadian Chamber of Commerce’s chief economist Stephen Tapp told The Logic in an interview. U.S. Ambassador David Cohen said last year the contentious tax could cause a “big fight” between the two countries, as it targets some of the U.S.’s biggest companies.