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One journalist accused Canadian Prime Minister Mark Carney of chickening out.
Acquiescing to pressure from the Trump administration, the Canadian government announced on Sunday that the country will rescind the digital services tax, a levy that would have seen large American tech firms pay billions of dollars to Canada over the next few years.
The Sunday announcement from the Canadian government cited "anticipation of a mutually beneficial comprehensive trade arrangement" as the reason for the rescission.
"Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis," said Canadian Prime Minister Mark Carney in the statement.
The digital services tax impacts companies that make over $20 million in revenue from Canadian users and customers through digital services like online advertising and shopping. Companies like Uber and Google would have paid a 3% levy on the money they made from Canadian sources, according to CBC News.
The reversal comes after U.S. President Donald Trump on Friday blasted the digital services tax, calling it a "direct and blatant attack on our country" on Truth Social.
Trump said he was suspending trade talks between the two countries because of the tax. "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period," Trump wrote. The United States is Canada's largest trading partner.
Payments from tech firms subject to the digital services tax were due starting on Monday, though the tax has been in effect since last year.
"The June 30, 2025 collection will be halted," and Canada's Minister of Finance "will soon bring forward legislation to rescind the Digital Services Tax Act," according to the Sunday statement.
"If Mark Carney folds in response to this pressure from Trump on the digital services tax, he proves he can be pushed around," said Canadian journalist Paris Marx on Bluesky, speaking prior to the announcement of the rescission. "The tax must be enforced," he added.
"Carney chickens out too," wrote the author Doug Henwood on Twitter on Monday.
In an opinion piece originally published in Canadian Dimension before the announcement on Sunday, Jared Walker, executive director of the progressive advocacy group Canadians for Tax Fairness, wrote that all the money generated for the tax could mean "more federal money for housing, transit, and healthcare transfers—all from some of the largest and most under-taxed companies in the world."
Walker also wrote that the digital service tax could serve as a counterweight to the so-called "revenge tax" provision in Trump's sprawling domestic tax and spending bill.
Section 899, called "Enforcement of Remedies Against Unfair Foreign Taxes," would "increase withholding taxes for non-resident individuals and companies from countries that the U.S. believes have imposed discriminatory or unfair taxes," according to CBC. The digital services tax is one of the taxes the Trump administration believes is discriminatory.
"If 'elbows up' is going to be more than just a slogan, Canada can't cave to pressure when Donald Trump throws his weight around," wrote Walker, invoking the Canadian rallying cry in the face of American antagonism when it comes to trade.
"But this slogan also means the Carney government has to make sure it is working on behalf of everyday Canadians—not just the ultra-rich and big corporations that are only 'Canadian' when it's convenient," Walker wrote.
There is an emerging consensus among European policymakers and experts alike that Trump wants to do to the E.U. what he is doing to the U.S.—destroy its civil society.
The European Union came into existence in 1992 with the signing of the Maastricht Treaty, which led to a single market, border-free travel, and the euro. Since then, the E.U. has evolved in various ways, although it has stopped short of developing a centralized fiscal authority and setting up a European army. Moreover, the E.U. has long been plagued by a number of legitimacy problems that have given rise to Euroscepticism among both left-wing and right-wing citizens.
Nonetheless, certain recent global developments are forcing the E.U. to upend many long-held ideas and norms about its own security and relations with other countries. Russia’s war in Ukraine and the sudden shift in U.S. policy toward Europe have made both policymakers and citizens across the continent more aware of the need not only for deeper integration and a new European governance architecture but also of the historical necessity to create a new world order. While Russia’s war in Ukraine has forced the E.U. to rethink its energy policy and compelled countries such as Finland and Sweden to become full members of the North Atlantic Treaty Organization (NATO), it is U.S. President Donald Trump’s hostility toward Europe and its institutions that is bringing Europeans closer together and even making them realize that the E.U. is a safe haven when all is said and done.
Indeed, the latest Eurobarometer survey, which was released on May 27, 2025, reveals the highest level of trust in the E.U. in nearly two decades and the highest support ever for the common currency. The overwhelming majority of respondents also displayed support for a common defense system among E.U. member states and opposition to tariffs. Equally impressive is the fact that a huge majority agreed that the E.U. is “a place of stability in a troubled world.”
Trump is trying to remake the United States in his own image and also to destroy the E.U., which he says is “nastier than China.”
These findings come just days after Trump told a rally in West Mifflin, Pennsylvania that he will double tariffs on steel and aluminum imports to 50%. This move, which will take effect on June 4, prompted the European Commission to announce that Europe is prepared to roll out countermeasures in order to retaliate against President Trump’s plan to increase steel and aluminum tariffs. It said that it “strongly” regrets Trump’s threat and that “if no mutually acceptable solution is reached both existing and additional E.U. measures will automatically take effect on July 14—or earlier, if circumstances require.”
The concern among many Europeans is that U.S.-E.U. relations are not only seriously damaged but that the U.S. has now become Europe’s enemy. Since coming to office, Trump has launched an active campaign against European democracy, with members of his administration not only bashing Europe but openly supporting far-right parties across the continent.
The common perception about Europe is that it is indecisive, too slow to act, even when major crises come knocking at its door. There is an element of truth in that, as the E.U. has shown a proclivity for reactive rather than proactive political behavior. But the Trump shock appears to be rousing Europe from its geopolitical slumber. The E.U. is standing up to the bully in Washington and is looking after Europe’s own interests with greater zeal than ever before. This is because there is indeed an emerging consensus among European policymakers and experts alike that Trump wants to do to Europe what he is doing to the U.S.--i.e., destroy its civil society. MAGA hates Europe for cultural and political reasons. For Trump, as Célia Belin, senior policy fellow at the European Council on Foreign Relations and head of the Paris office, aptly put it, “Europeans are an extension of his political opposition at home... and Europe is thus a symbol of the political ideals [that] Trump seeks to eliminate, transform, and subjugate.”
In its attempts to find a new role in world affairs in the Trump era, Europe is not merely reacting to Washington’s whims but seeks to implement policies that reinforce its own strategic autonomy, both internally and externally. The European Commission has updated its industrial strategy by speeding up clean energy and pursuing new trade agreements with reliable partners. While some European leaders see both Russia and China as representing a threat to the rules-based international order, there have been numerous calls by various policymakers across the continent for a closer collaboration between China and the E.U. in light of “Trump’s ‘mafia-like’ tactics.” European Union leaders will travel for a high-stakes summit to Beijing in July after failing to convince Chinese President Xi Jinping to visit Brussels for a summit marking the 50th anniversary of E.U.-China diplomatic relations. And France has called for a stronger E.U.-China alignment on climate action amid the U.S.’ withdrawal from the Paris agreement.
China is the E.U.’s second-largest trading partner. Europe is, in fact, not only growing more dependent on China for manufactured goods but, in spite of differences in bilateral relations, such as China’s position on the war in Ukraine, is actually warming up to the idea that the E.U.-China relationship is an essential vehicle for tackling global challenges and safeguarding international multilateralism.
Europe is also looking into other regions of the world as part of a concerted effort to promote ever more vigorously its own strategic autonomy. Since Trump took office, the E.U. concluded a free trade agreement with Mercosur, an economic bloc made up of Argentina, Brazil, Paraguay, Uruguay, and Bolivia, with scores of other countries (among them are Chile, Columbia, Ecuador, and Peru) as associate members. Mercosur, or the Southern Common Market, is the fifth-largest economy and encompasses more than 285 million people.
The E.U.-Mercosur agreement, which had been in the making for 25 years, still needs to be ratified, and Argentina’s far-right Milei government, which is in close political-ideological alignment with the Trump administration, could prove to be a stumbling block to its ratification. Argentinian President Javier Milei is, in fact, more interested in signing a free trade agreement with the United States, which would be in violation of Mercosur regulations.
After many years of negotiations, the E.U. is also close to finalizing a free trade agreement with India. The 11th round of negotiations between India and the E.U. concluded on May 16, and there is a firm commitment by both sides to strike a deal by the end of 2025. As European Commission President Ursula von der Leyen said, this agreement would be “the largest deal of its kind anywhere in the world.”
If ratified, the E.U.-Mercosur free trade agreement will create a market of around 800 million people. When finalized, the E.U.-India free trade agreement will create a market of close to 2 billion consumers.
Trump is trying to remake the United States in his own image and also to destroy the E.U., which he says is “nastier than China.” One would like to believe that it is probably unlikely that he will succeed in remaking the U.S. in his own nasty image, but it is positively certain that he will not succeed in destroying Europe and its institutions, even though there is a lot that needs to be done to create a fairer and more inclusive Europe. In the meantime, however, Trump’s “mafia-like tactics” are bringing Europeans closer together and the continent ever closer to other regions of the world.
Musk’s proximity to the White House and Trump’s innermost circle has provided him with powerful new leverage to push his businesses on foreign governments.
A series of internal government messages reveal how U.S. embassies and the State Department have pushed governments to clear regulatory barriers for Elon Musk’s Starlink. In the messages obtained by The Washington Post, Secretary of State Marco Rubio directs U.S. officials to push for permit approvals for the satellite internet service. Governments facing chaotic tariff threats have gotten the message and are rolling out the red carpet for Musk in the hope of avoiding costly tariffs.
This scandal has drawn widespread attention and condemnation, with dozens of members of Congress and senators calling for investigations into Musk and the government agencies that may have pressured countries on his behalf.
While this corruption is shocking, it’s hardly surprising. Before the “Liberation Day” tariff announcement, Public Citizen issued a report documenting how the tariff process in President Donald Trump’s first term enabled a quid-pro-quo spoils system that rewarded the rich and well-connected. We warned that Musk’s powerful and ill-defined role in the U.S. government could lead other countries to decide that giving special privileges to Musk’s companies would help them earn brownie points with the Trump administration.
Elon Musk has been pushing for Starlink expansion across the world for years, but some countries have been wary of permitting the service to enter their markets for a number of reasons. For example, experts have raised concerns about threats to “data sovereignty,” a group or individual’s right to control and maintain their own data. To the extent that communications on the Starlink network are routed through the U.S., they may be accessible to U.S. law enforcement and intelligence agencies.
And it is not unreasonable for countries to consider that access to Starlink services could be weaponized and a nation’s internet access held hostage at the whim of a single man or wayward administration. Alarmingly, claims abound that the U.S threatened to withdraw Ukrainian access to Starlink if the country did not sign the U.S.-Ukraine minerals agreement (though this has been denied by Musk).
But now, Musk’s proximity to the White House and Trump’s innermost circle has provided him with powerful new leverage to push his businesses on foreign governments: the threat of Trump’s chaotic tariffs. For some countries weighing the pros and cons, the chance that approval for Starlink helps stave off tariffs has changed the equation.
Trump and his cronies have made it clear since Day 1 of his 2015 presidential primary campaign that he will bend public policy to benefit himself and his wayward inner circle of Yes Men.
The Washington Post exposé highlighted several diplomatic cables from various embassies commenting on foreign governments’ decision-making on the satellite internet service.
For example, a March cable from the U.S. Embassy in Cambodia explains it “has observed the Cambodian government—likely due to concern over the possibility of U.S. tariffs—signal its desire to help balance our trade relationship by promoting the market entry of leading U.S. companies such as Boeing and Starlink.” Leaders of the American Chamber of Commerce in Cambodia advised the Ministry of Economy and Finance to take “decisive action in offering concessions to the United States… recommending that Cambodia… expeditiously approve Starlink’s market entry request.”
Cambodia is facing a 49% Trump tariff rate.
Another cable from April highlighted that Starlink was pushing for a license to operate in Djibouti. State Department staffers noted Starlink’s approval would be an opportunity to open the country’s market and boost “an American company.” Embassy officials “will continue to follow up with Starlink in identifying government officials and facilitating discussions.”
Djibouti is facing a 10% Trump tariff rate.
Sec. Rubio “encouraged Vietnam to address trade imbalances,” in an early March 2025 phone call with the nation’s Foreign Ministry. Shortly thereafter, the Vietnamese government laid out a battery of appeasements to the Trump administration, including a waiver of their domestic partnership requirements, enabling the launch of a five-year pilot program with Starlink. An unnamed source speaking with Reuters said this can be seen as “an olive branch” to Musk and his company, a “demonstration from the Vietnamese side that they can play the transactional diplomacy game if the Trump administration wants that.”
Vietnam is facing a 46% Trump tariff rate.
A Bangladeshi representative visited the White House in mid-February to offer concessions to stave off the promised tariffs and was brought to a surprise meeting with Elon Musk. Musk wanted to discuss the ongoing negotiations between Starlink and Bangladesh’s regulatory agency—the implication being that Bangladesh would not get favorable trade terms from the U.S. if Starlink wasn’t permitted. Early April saw Bangladesh’s Telecommunication Regulatory Commission issue what was described as “the swiftest recommendation” in its history for a Starlink license. When Trump announced a punishing 37% reciprocal tariff on Bangladesh, the export-dependent country wrote a letter to Trump requesting leniency and detailing the ways in which it was already taking action to benefit U.S. businesses—including its access for Starlink.
Bangladesh is facing a 37% Trump tariff rate.
Lesotho also granted a license to Starlink in April, despite local objections to foreign-owned businesses. Local NGOs called the licensing decision “a betrayal—a shameful sellout by a government that appears increasingly willing to place foreign corporate interests above the democratic will and long-term developmental needs of the people of Lesotho.” An internal State Department memo states, “As the government of Lesotho negotiates a trade deal with the United States, it hopes that licensing Starlink demonstrates goodwill and intent to welcome U.S. businesses.” Subtle.
Lesotho is facing a 50% Trump tariff rate.
Musk has infamously complained on social media over South Africa’s post-Apartheid reparations rules, claiming that Starlink is “not allowed to operate in South Africa simply because [he’s] not Black [sic]”—despite having never even applied for a license. The Washington Post noted that “the story about Bangladesh was making its way around political and business circles in South Africa,” and it’s assumed that approval of a Starlink license has become “a prerequisite for getting a favorable trade deal.” Legislators have introduced a controversial measure to exempt Starlink from the Black empowerment law.
South Africa is facing a 30% Trump tariff rate.
Musk has been looking to break into the Indian market for years—even launching, then retracting, services in 2022 without the necessary licenses. Around the time of the Bangladesh meeting, Musk also met with Prime Minister Narendra Modi near the White House. According to India Today, a “key agenda” item was Starlink’s pending approval in India. In May of 2025, India dropped two proposed security rules that Starlink had refused during earlier discussions.
India is facing a 26% Trump tariff rate.
In March of 2024, Starlink was prohibited in the Democratic Republic of the Congo, citing concerns from military experts who warned it could be misused by armed insurgent groups including M23. That ban was recently lifted, and Starlink launched in May 2025. This policy reversal comes at a time of mounting frustrations from Congolese civil society over secretive dealmaking with the United States. The resurgence of rebel group M23 has pushed President Felix Tshisekedi’s government toward a controversial deal that has the private military corporation Blackwater’s Erik Prince at the center. The deal would exchange U.S. security assistance for access to DRC critical minerals, not unlike the recent U.S.-Ukraine minerals deal.
The DRC is facing an 11% Trump tariff rate
The list goes on. Mali, Somalia, Namibia, and others are also considering regulatory approval of Starlink and facing varying degrees of resistance from civil society.
Namibia is facing a 21% Trump tariff rate, with Mali and Somalia at 10%.
Paving the way for Starlink in other countries is just the tip of the iceberg. Trump and his cronies have made it clear since Day 1 of his 2015 presidential primary campaign that he will bend public policy to benefit himself and his wayward inner circle of Yes Men. Anything that can limit their personal gain is on the chopping block.
The attacks on other governments’ legitimate domestic policies aren’t just predictable, they’re predicted. In detail. Not just by Trump’s erratic speeches and TruthSocial policy changes, but across nearly 400 pages, readily available to us all at ustr.gov: the 2025 National Trade Estimate (NTE) Report.
This year’s report targets a litany of public interest laws and policies adopted by countries around the world to regulate the digital ecosystem. Notably, the 2025 NTE report calls out the satellite licensing and approval processes in Brazil, South Korea, and Malaysia, and points out that a number of countries impose import restrictions on certain types of internet and telecommunications equipment. Removing these would smooth regulatory hurdles for Starlink in those countries. The NTE report is also chock-full of other privacy, AI accountability, and competition policies that Big Tech companies want to get rid of around the world.
The report was drafted in large part based on comments submitted by corporations in October 2024 under then-President Joe Biden and before the presidential election. Given the Trump administration’s brazen willingness to openly push the agenda of his billionaire buddies, we can now expect even more extreme demands from companies like Starlink. For instance, in a submission to the Trump administration ahead of the “reciprocal tariffs” announcement, SpaceX complained about governments imposing “non-tariff” barriers impeding global roll-out of Starlink, including having to pay governments for access to spectrum—a standard practice in a number of countries, including the U.S.
As Trump wields his chaotic tariff threats to extract concessions in dozens of closed-door negotiations, we should not be surprised to see even more Big Tech giveaways and lucrative favors for Musk. It is imperative that Congress demand transparency in these trade talks and hold the Trump administration accountable for such inappropriate coercion.