Core Insights - Etsy reported a 3.8% year-over-year revenue growth in Q2, reaching $670 million, surpassing analyst expectations of $647 million [1] - The company's net profit for the quarter was $28.8 million, translating to earnings of $0.25 per share, down from $53 million and $0.41 per share in the same period last year [1] - Active buyer count decreased by 4.6% to 87.3 million, while total gross merchandise sales fell by 4.8% to $2.8 billion [1]

Core Viewpoint - Canada has announced the cancellation of its digital services tax to advance broader trade negotiations with the United States, aiming to reach an agreement by July 21 [2][3]. Group 1: Trade Negotiations - Canada will resume trade negotiations with the U.S. following the cancellation of the digital services tax, with a target to finalize an agreement by July 21 [2][3]. - Canadian Prime Minister Carney and U.S. President Trump have agreed to restore negotiations, emphasizing the importance of the agreement for Canadian workers and businesses [3]. - The cancellation of the digital services tax is seen as a significant step towards improving trade relations and creating jobs in Canada [3]. Group 2: Digital Services Tax - The digital services tax was initially proposed by former Prime Minister Trudeau and was set to take effect on June 30, 2024, imposing a 3% tax on certain tech companies [7]. - The tax would apply to companies with global revenues exceeding $833 million and digital service revenues in Canada exceeding 20 million CAD (approximately 1.05 million RMB) [7]. - Major U.S. tech companies like Amazon, Apple, Google, and Uber would have been affected by this tax, leading to strong opposition from the U.S. government [7]. Group 3: U.S.-Canada Trade Relations - Canada is the second-largest trading partner of the U.S., purchasing $349.4 billion worth of U.S. goods and exporting $412.7 billion to the U.S. last year [6]. - Trump's administration had previously threatened to halt trade negotiations due to Canada's digital services tax, indicating the tax's significant impact on bilateral relations [4][5]. - The U.S. has historically viewed Canada's digital services tax as a direct attack on American tech giants, leading to ongoing disputes between the two nations [7].

Group 1 - The European Union plans to impose tariffs on $26 billion worth of U.S. goods, including Harley-Davidson motorcycles and bourbon whiskey, and introduce a digital services tax targeting tech giants like Google and Amazon [1] - The new digital services tax (DST) specifically impacts U.S. software and internet exports, which were previously unaffected by tariffs, leading to significant potential declines in stock prices for major tech companies [2] - The DST aims to tax multinational tech companies that generate revenue from UK users, imposing a 2% tax on revenues from search engines, social media services, and online marketplaces, averaging £800 million annually, highlighting public concerns over tax avoidance [5] Group 2 - The introduction of the DST is seen as a response to the perceived tax evasion by tech giants, with significant implications for their profitability and market performance [5] - The symbolic nature of the DST reflects broader global tensions, as it is viewed as a retaliatory measure against U.S. policies, increasing pressure on American tech companies [5]