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Associated Press

Canadian Prime Minister Mark Carney said late on Sunday that trade talks with the US have resumed after Canada rescinded its plan to tax US technology firms.
US President Donald Trump said on Friday that he was suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called “a direct and blatant attack on our country”.
The Canadian government said “in anticipation” of a trade deal, “Canada would rescind” the Digital Services Tax. The tax was set to go into effect on Monday.
Carney and Trump spoke on the phone on Sunday, and Carney’s office said they agreed to resume negotiations.

“Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Carney said in a statement.
“Thank you, Canada, for removing your Digital Services Tax which was intended to stifle American innovation and would have been a dealbreaker for any trade deal with America,” US Commerce Secretary Howard Lutnick responded in a social media post.
Carney visited Trump in May at the White House, where he was polite but firm. Trump travelled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks.
Trump, in a post on his social media network last Friday, said Canada had informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada.
The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3 per cent levy on revenue from Canadian users. It would have applied retroactively, leaving US companies with a US$2 billion bill due at the end of the month.
Daniel Béland, a political-science professor at McGill University in Montreal, called Carney’s retreat a “clear victory” for Trump.
“At some point this move might have become necessary in the context of Canada-US trade negotiations themselves, but Prime Minister Carney acted now to appease President Trump and have him agree to simply resume these negotiations, which is a clear victory for both the White House and big tech,” Béland said.




He said it makes Carney look vulnerable to President Trump’s outbursts.
“President Trump forced PM Carney to do exactly what big tech wanted. US tech executives will be very happy with this outcome,” Béland said.
Canadian Finance Minister Francois-Philippe Champagne also spoke with US Treasury Secretary Scott Bessent on Sunday.
“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,” Canadian Finance Minister François-Philippe Champagne said in a statement.
Trump’s announcement on Friday was the latest swerve in the trade war launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president poking at the nation’s northern neighbour and repeatedly suggesting it would be absorbed as a US state.
Canada and the US have been discussing easing a series of steep tariffs Trump imposed on goods from America’s neighbour.
Trump has imposed 50 per cent tariffs on steel and aluminium, as well as 25 per cent tariffs on autos. He is also charging a 10 per cent tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set expires.
Canada and Mexico face separate tariffs of as much as 25 per cent that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Trump’s first term.
Additional reporting by Associated Press


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Carney says trade talks with US resume after Canada rescinded tech tax

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Donald Trump meets Canadian Prime Minister Mark Carney in the Oval Office at the White House on May 6. Photo: Getty Images/TNS

US Treasury Secretary Scott Bessent suggested on Friday that trade talks could continue to September. Photo: AP

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Canadian Prime Minister Mark Carney responds to a question in the House of Commons on Parliament Hill in Ottawa, Ontario, on Thursday. Photo: Canadian Press via AP

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World

United States & Canada

On Friday, Donald Trump abruptly cut off trade talks with Canada over what he called a ‘blatant attack’ on the US


On Friday, Donald Trump abruptly cut off trade talks with Canada over what he called a ‘blatant attack’ on the US.


Carney says trade talks with US resume after Canada rescinded tech tax

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}On Friday, Donald Trump abruptly cut off trade talks with Canada over what he called a ‘blatant attack’ on the US

On Friday, Donald Trump abruptly cut off trade talks with Canada over what he called a ‘blatant attack’ on the US