For more than two years, the Business Council of Canada has warned that the unilateral imposition of a digital services tax (DST) risked triggering a retaliatory response from the United States. Today’s announcement confirms the Canadian government’s decision to break from the multilateral OECD consensus risks serious economic consequences for Canada. We once again urge the federal government to change its position on the DST and instead focus its efforts on strengthening the Canada-U.S. bilateral relationship.