Elbows down

Canada, Hungary, Serbia, Israel, Palestine, and the US.

Wild Geese in Flight, Winslow Homer, 1897, oil on canvas, Portland Museum of Art, Maine.

The five things you need to know today:

• CANADA. Trump dodges Carney’s tax, for now.

• HUNGARY. The prime minister digs in as his opponents unite.

• SERBIA. Calls for a snap election are rebuffed again.

• ISRAEL. PALESTINE. Netanyahu postpones his day in court.

• UNITED STATES. The Big Beautiful Bill still faces big, ugly hurdles.

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CANADA. Chicken wings goose

Trump dodges Carney’s tax, for now.

Mark Carney rescinded Canada's digital services tax late Sunday after Donald Trump described it as a "blatant attack". The levy, legislated last year, was to take effect Monday. Trade talks will resume for an outcome by 21 July, Ottawa said.

INTELLIGENCE. Canada's 3% tax may have, in any case, been removed as part of the “side by side” deal agreed by the G7 in exchange for the US to drop its "revenge tax" provision in Section 899 of the forthcoming budget. But by dramatically dropping it in response to Trump's threats to end trade negotiations, Carney looks like he's lost a game of chicken. Other jurisdictions with a DSA, including the UK and the EU (under varying VAT rates), will be watching.

FOR BUSINESS. Carney can threaten to re-introduce the tax, should a tariff deal not be agreed, but he's likely lost some negotiating leverage by rescinding it early. Waiting for a negative market reaction to force Trump to concede may have been a better strategy in brinksmanship, but such tactics would be anathema to Carney, a former central banker. Further, by allowing Trump to ‘win’ on what was always a minor measure, Carney can gain something bigger.

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HUNGARY. Pride and coram non judice

The prime minister digs in as his opponents unite.

An estimated 100,000 attended a banned LGBT pride march through Budapest Saturday, with anti-government activists and 70 members of the European Parliament joining. Viktor Orban called the march “repulsive” and blamed the EU.

INTELLIGENCE. After Orban banned the march on dubious legal grounds, European