The Financial Post reports in its Tuesday, Sept. 17, edition that the Canadian economy is expected to be a major focus on Parliament Hill in the coming months as the minority Liberal government faces pressure from both the left and right following the collapse of a support agreement with the NDP. The Post's Jordan Gowling writes that trade is expected to be a key economic issue this fall, with continuing disputes with major trading partners and the potential re-election of U.S. President Donald Trump, which could lead to increased U.S. protectionism. The Trudeau government has renewed its "Team Canada" strategy to prepare for potential trade tensions with the U.S. There are already several trade disputes with the current U.S. administration, including the federal government's Digital Services Tax, which imposes a 3-per-cent levy on companies providing digital services to Canadians, affecting major U.S. tech companies like Netflix and Alphabet's Google.
U.S. Trade Representative Katherine Tai has opposed the tax and requested dispute settlement consultations with Canada under the Canada-United States-Mexico Agreement. This is the first step toward potential retaliatory tariffs if no solution is reached.
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