Trump Trade: Canada rescinds digital services tax after U.S. drops trade talks

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:

TRADE TALKS: Over the weekend, President Donald Trump stated in a post to Truth Social, “We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. 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. Thank you for your attention to this matter!”

Meanwhile, Canada has walked back on its digital services tax “in anticipation” of a mutually beneficial comprehensive trade arrangement with the U.S., Lim Hui Jie of CNBC reports. The first payments of Canada’s digital services tax, which was enacted last year and applies retroactively to 2022, were originally set to be collected Monday. The tax would have applied to both domestic and foreign tech companies, including Amazon (AMZN), Google (GOOGL), and Meta (META).

AUTO TRADE: During an interview broadcast with Fox News, President Donald Trump said Japan engages in “unfair” automobile trade with the U.S. and should increase its imports of U.S. energy resources and other goods, Reuters reports.

TIKTOK SALE: U.S. President Donald Trump told Fox News (FOX) in an interview broadcast that he has found a buyer for the TikTok app, which he described as a group of “very wealthy people” who will be revealed in about two weeks, Reuters reports. Trump said the deal being developed would likely need China’s approval to move forward and predicted Chinese President Xi Jinping would likely approve it. Publicly traded companies in the space include Meta Platforms (META), Pinterest (PINS), Reddit (RDDT) and Snap (SNAP).

EXPORT CONTROLS: China’s export controls are impacting products beyond the rare earths and magnets officially identified by Beijing, threatening supply chain disruptions and undermining U.S. claims a new trade deal had resolved shipment delays, Edward White of The Financial Times reports. Back in April in retaliation for Donald Trump’s tariffs on Chinese imports, Beijing began to require license for exports of seven rare earth metals and magnet materials. On June 10, the U.S. agreed with China that rare earth shipments should be expedited, but China’s commerce ministry and customs officials have begun demanding additional inspections, third party chemical testing, and analysis of products not included in the original control list. Companies involved in the development and mining of rare earth minerals include: Nova Minerals (NVA), Ioneer (IONR), Lynas Rare Earths (LYSCF), MP Materials (MP), Energy Fuels (UUUU), NioCorp (NB) and VanEck Vectors Rare Earth/Strategic Metals ETF (REMX).

MONTHLY ACTIVE USER DROP: PDD‘s (PDD) Temu and Shein have seen their once rapid user growth reverse in the U.S. after President Donald Trump imposed steep tariffs on Chinese goods and closed a tax loophole that once allowed them to undercut their rivals, Laura Onita of The Financial Times reports. Temu’s monthly active users fell 51% to 40.2M in the U.S. between March and June, the Times says, citing Sensor Tower. Meanwhile, Shein’s monthly active users fell 12% to 41.4M.

BIG BEAUTIFUL BILL: Tesla (TSLA) CEO Elon Musk said via X, the platform formerly known as Twitter: “The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country! Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future.”

DRUG SALES: U.S. health officials met with Walmart (WMT), Amazon (AMZN), and other retailers last week as part of an effort to help Americans get their medicines more directly from companies that make them, Rachel Cohrs Zhang and Jaewon Kang of Bloomberg report. The conversations between the Trump administration and experts from the straight-to-consumer drug industry are intended to explore streamlining the way Americans get their medicines and therefore lower costs, and while officials at the U.S. Department of Health and Human Services conducted the meeting to discuss options, it is unclear what approach and timeline the department might pursue. Walmart started offering prescription delivery in October, making it a competitor to Amazon, which runs a pharmacy division that offers same-day drug delivery in some locations, and has also partnered with Eli Lilly (LLY) to sell weight loss drugs directly to patients.

GLOBAL TV STREAMING: Trump Media and Technology Group (DJT) announced that the Company has begun beta testing the launch of Truth+ globally. The global launch will make most Truth+ TV streaming channels and video on demand content available on apps worldwide, joining the U.S., Canada, and Mexico, where Truth+ is now available via iOS, Android, and connected TV apps and on the web. For the first time, the launch will also make the flagship Newsmax (NMAX) channel available in international markets without the need for a VPN.