CALGARY, Alberta – Canada’s prime minister, Mark Carney, faced sharp criticism after he abandoned the digital services tax (DST) on American tech companies just before it would take effect.
The decision, which followed pressure from U.S. President Donald Trump, was quickly claimed as a win by the Trump administration. Across Canada, and especially in Alberta, many saw Carney’s move as a sign that he puts foreign interests ahead of Canada’s needs.
Carney’s appearance at the Calgary Stampede was met with boos, reflecting deep frustration with his leadership, policies focused on net-zero emissions, and perceived disregard for Canadian priorities. Warnings from the UK about Carney’s past have also raised doubts about his ability to steer Canada through tough times.
Digital Tax Reversal: Carney Caves
On June 30, 2025, the White House announced that Carney gave in to Trump’s demands and called off Canada’s DST. The tax would have charged a 3% fee on U.S. giants like Google, Amazon, and Meta for money made from Canadian users.
The plan, passed in 2024 but set to apply retroactively to 2022, was expected to bring in $7.2 billion over five years—funds that could have helped Canada’s economy during a trade spat with Trump’s tariffs.
As Trump threatened to end trade talks and add new tariffs, Carney backed down after a Sunday night call with the U.S. president. White House Press Secretary Karoline Leavitt stated, “It’s very simple: Prime Minister Carney and Canada caved to President Trump and the United States of America.”
Carney tried to justify the decision by calling it part of a broader negotiation and saying it was wasteful to collect the tax only to refund it later. Critics, including University of Ottawa professor Michael Geist, said Canada gave up a key bargaining point without getting anything in return.
The timing of the announcement—just hours before payments were due—underlined Carney’s retreat and made him look desperate to keep peace with Trump. For many Canadians, the move shows weakness and raises doubts about Carney’s promise to protect the country’s interests.
Alberta’s Discontent: Carney Booed at the Calgary Stampede
The strongest backlash came from Alberta, the heart of Canada’s oil and gas industry. At the 2025 Calgary Stampede, a major cultural event, Carney was loudly booed by people who see him as an out-of-touch elitist.
Alberta, known for its energy resources and strong sense of independence, has long clashed with Ottawa’s policies. Carney’s cancellation of the digital tax, viewed as giving in to U.S. pressure, only made the divide worse.
The reaction at the Stampede reflected a wider view that Carney’s vision serves outside interests instead of Canadians.
Distrust of Carney in Alberta runs deep. Premier Danielle Smith, a strong voice against federal control, has said she is cautious about Carney’s leadership and questions his intentions.
Many in Alberta see his continued tax on large carbon emitters, even as he ended the consumer carbon tax, as a weak effort that fails to support the province’s energy sector. To them, Carney’s response to Trump fits a pattern of ignoring the needs of resource-rich areas.
Net-Zero Focus: Canadian Industry Feels Left Behind
Carney’s dedication to net-zero climate targets has pushed him further from voters in Alberta and other regions relying on oil and gas.
As a former UN climate envoy and head of the Bank of England, he has always championed green policies, from carbon offsets to shifting money away from fossil fuels. His campaign promised more electric vehicles and a national power grid, yet these changes come at a cost to industries key to Canada’s economy.
Carney ended the consumer carbon tax in March 2025 but kept a tax on big industrial emitters, drawing fire from Conservative leader Pierre Poilievre. Poilievre called for the removal of emission caps and new pipelines to help the energy sector.
His message—support Canadian resources—connects with Albertans who see Carney’s climate policies as a threat to jobs and growth. While Carney talks about making Canada a leader in both clean and traditional energy, many workers in oil-rich areas feel left out.
Carney’s climate plans also raise questions about how much control Canada keeps over its future. His leadership of the Glasgow Financial Alliance for Net Zero and his push for a “green transformation” suggest he is happy to follow global standards, even if it hurts local industries.
For those who value Canadian independence, this adds to concerns that Carney listens more to global priorities than to Canadians.
Britain’s Critique: Doubts About Carney’s Record
Across the UK, critics have warned Canada about Carney’s leadership, highlighting his time as Bank of England governor from 2013 to 2020.
During Brexit, Carney’s dire predictions—called “Project Fear” by his critics—did not come true, which hurt his credibility. Many British conservatives saw him as too close to institutions like the European Union.
His push for climate-driven financial rules was also seen as putting ideas over real economic needs, a charge echoed by Canadian sceptics.
Some British commentators say Carney’s global mindset could cost Canada control over its own decisions. His focus on international financial stability often meant national needs were set aside, a trend they fear could continue in Canada.
One analyst put it plainly: “Carney thinks globally, not nationally. He sees Canada as part of a system, not a country with its own path.” This view adds to the worry that Carney’s retreat on the digital tax is part of a bigger habit of putting outside interests first.
A Country Divided
By backing down on the digital services tax under Trump’s pressure, Carney has exposed deeper divisions in Canada. In Alberta, where energy jobs and economic independence matter most, frustration with his leadership has grown, as seen by the jeers in Calgary.
Carney’s strong push for net-zero policies may please some, but it leaves many Canadians—especially those who depend on the oil and gas sector—feeling forgotten.
Warnings from Britain about his history only add to the scepticism, painting Carney as a leader more comfortable with global elites than with regular Canadians.
As Canada faces tense trade talks with its top partner, Carney’s willingness to stand up to pressure will shape his legacy. This recent decision to drop the digital tax looks like a clear choice to avoid conflict rather than stand firm.
For those who want Canadian interests put first, the message from Calgary rings out: Mark Carney needs to show he is leading for Canadians, not for Washington or the world.
