Late last week, U.S. President Donald Trump abruptly suspended trade negotiations with Canada, citing Ottawa’s proposed digital services tax (DST) as an “egregious” breach of trust. In response, Canada announced on Sunday that it would rescind the 3% DST—which had targeted major U.S. tech firms—and resume trade talks, with the goal of reaching an agreement by July 21. This swift reversal helped defuse what had become a tense diplomatic flashpoint and eased trade-policy uncertainty, at least for the time being.
Meanwhile, in Washington, the U.S. House-approved “One Big Beautiful Bill” had included provisions to significantly increase withholding taxes on Canadian investors, aimed at countries implementing so-called “unfair foreign taxes” like the DST. With Canada stepping back from the tax, the rationale for these punitive measures has effectively been removed—making it far less likely that Canadians holding U.S. equities, whether in registered or non-registered accounts, will face new tax exposure from this bill.
Looking ahead, Thursday brings a series of important economic releases that could influence markets. In the U.S., the June jobs report will be closely watched, offering fresh insight into the strength of the labor market and underlying inflation pressures—both of which will help shape expectations for the Federal Reserve’s next move. Here in Canada, May trade data will be released the same day and will provide a clearer picture of whether the economy continues to feel the effects of tariff-related headwinds. These figures may also influence growth forecasts and inflation expectations ahead of the Bank of Canada’s July 30 interest rate decision.
School is officially out, and Canada just celebrated its 158th birthday—marking the start of summer vacations and, traditionally, summer jobs. But is that still the case? Many families are finding that their children or grandchildren are struggling to secure seasonal employment this year. We’ve included an article this week that explores the issue in more depth, highlighting how student unemployment has reached concerning levels in Canada.
At ThinkWise, we’re proud to support students by offering valuable work experience. This summer, we’re pleased to welcome Abby Smith to our team. Abby is a student at Queen’s University and will be with us through the end of August. You may hear from her if you call our office or need assistance with the client portal. Please join us in giving her a warm welcome if you happen to connect with her.
What happens when a creative passion turns into a full-time business—and your spouse becomes your business partner? This fascinating article follows the journeys of women who built successful Etsy shops from the ground up, eventually bringing their husbands on board to help run the growing ventures. It’s a modern take on the family business, filled with inspiration, challenges, and the realities of blending work and home life. A great read for anyone curious about entrepreneurship, resilience, and redefining success.
Summer vacations have begun in our office, but we remain fully available during regular business hours and are here to assist you as always. If you’re looking to schedule a meeting with Candace or Pat, we encourage you to reach out early to ensure availability during the summer months.
We hope you have a terrific week and start to your summer!!
Did you know that the Tax-Free Savings Account (TFSA) has been around for over 15 years now? We have attached a great article answering many of the commonly asked questions about the TFSA that we thought would be great to share.
