Canada

I really hope it comes back. Best we can do now is stop using those services from US companies.

From the Government point of view, it made more sense to let go a potential of 7B$ in revenue to save some Canadian jobs. It's less damaging to do that and lose some numbers in a spreadsheet than seeing jobs in steel, automobile and other sectors lost, which require more work to bring back.

Also, these kinds of tax are normally reflected in higher price to the consumer, which doesn't help when there's no viable Canadian alternatives to turn towards to. What is Google, Netflix, etc going to do if they get taxed a part of their Canadian income? They'll increase the subscription cost to make up for it.

Not saying that I agree with the reason, and I'm not happy we lost that, but there's a bigger picture.

Trade watchers have always suspected Canada was holding on to the DST mainly for negotiating purposes. It was something generally positive for Canada that could nonetheless plausibly be negotiated away for some meaningful purpose, perhaps in the planned six-year review of the Canada-U.S.-Mexico Agreement (CUSMA) that replaced NAFTA under the first Trump presidency. Prime Minister Carney admitted this was the plan in a press scrum today (June 30).

I'm really hoping they played this card right. It doesn't feel like they did, but I hope Carney is playing on a level we don't get.

We should have just increased GST a small amount across the board instead of creating a tax that had such a concentrated impact on businesses from the country that is our largest trading partner.
There are these things that Canada does to protect industry or raise funds, but there are consequences for the quite convoluted way we go about it. VATs are a normal thing around the world, but we engineer these weird solutions to try to hide our protectionism.
For example instead of raising taxes and subsidizing the news media as a public good, we made (certain) Silicon Valley companies pay (certain) publishers for linking to them. Facebook then said it just won’t link to them and now there’s no news on Facebook. This was a backfire.
Instead of GST we could have taxed lots of things, fiber internet plans, advertising or digital services across the board, many people warned against the Trudeau era bills, they caused a rift with Biden too, and we’ve now lost the game of chicken and wasted 4 years on something we had to tear up.