In a statement released Wednesday, United States Trade Representative (USTR) spokesperson Adam Hodge claimed such measures “discriminate against U.S. companies.” The U.S. will “examine all options, including under our trade agreements and domestic statutes” if Canada “adopts a DST,” he said. (The Logic)

Talking point: Both countries are among the 136 jurisdictions that reached an October agreement on a new system for taxing multinational corporations, as well as a global minimum tax rate. Finance Minister Chrystia Freeland said at the time Ottawa would nonetheless create its own domestic levy, but would only implement it if the international deal isn’t active by the start of 2024. On Tuesday, Finance Canada published draft legislative proposals to enact the DST, prompting the renewed U.S. concern. The countries are already caught in tit-for-tariff trade fights over EVs and softwood lumber. Trade Minister Mary Ng’s office told The Logic USTR Katherine Tai has not raised the possibility of retaliatory measures in direct discussions. The friction goes both ways: Ng’s mandate letter, released Thursday, instructs her to engage the U.S. on “bilateral trade issues and protectionist measures.”