Canadian software could be in Donald Trump’s sights for tariffs, technology lawyers warn

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Canadian software could be in Donald Trump’s sights for tariffs, technology lawyers warn
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Digital products exempt from customs duties, fees, other charges under CUSMA, but ‘everything is thrown up in the air,’ Dentons lawyer warns as U.S. President readies retaliation for digital services tax

U.S. President Donald Trump is indeed eyeing the trade of digital goods for some kind of retaliatory action. Mr. Trump arrives at the White House on Feb. 22.Ever since U.S. President Donald Trump started moving to impose sweeping tariffs on Canada , many software entrepreneurs here have cautiously assumed they would be exempt, particularly since computer programs are now primarily shipped digitally over the internet, not on compact discs.“It is currently unclear whether proposed U.S.

“People in the software sector don’t spend much time thinking about tariffs, but that’s changing,” Ms. Johnson said in an interview. “Because of the broad and sweeping nature of the changes coming from the U.S. administration, it’s entirely possible this 25-per-cent tariff, when it comes into effect, will apply to software. We have to wait for details.”

Software would also be trickier to tariff, as digitally transmitted software doesn’t cross ports of entry like physical goods and would require “a massive regulatory overhaul to operationalize,” including tracking transmissions over telecommunications networks, said Chris Cochlin, a partner with international trade law firm Cassidy Levy Kent LLP in Ottawa.But Mr. Trump is indeed eyeing the trade of digital goods for some kind of retaliatory action. Last week, the U.S.

“There are likely to be some ramifications from the DST, given his dislike for it. This would be an easy way to start the negotiation.”

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