Canada scrapping tax on US tech firms after Trump suspends talks

Canada’s government announced late Sunday that it would scrap its digital services tax on U.S. technology companies, paving the way for the resumption of trade talks that President Trump suspended late last week.

Canada’s government had planned to begin collecting the tax on Monday but said Sunday it no longer would do so “in anticipation of a mutually beneficial comprehensive trade agreement with the United States,” according to Canada’s Department of Finance.

Officials said Canadian Prime Minister Mark Carney and Trump agreed to resume negotiations, aiming to strike a deal by July 21.

“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” Carney said in a statement.

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