Canada will rescind a planned digital services tax in order to advance stalled trade talks with the U.S., Ottawa announced on Sunday.
The tax on the revenues produced by Canadian online users, which was due to go into effect on Monday, angered Donald Trump, with the American president calling it “a direct and blatant attack” on the U.S. Trump terminated trade talks with Canada on Friday, blaming the "egregious" tax.
Referring to Canada, Trump wrote on Truth Social on Friday: “They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also."
After his government folded on the tax, Canadian Prime Minister Mark Carney and the Trump administration agreed to resume trade talks, aiming to reach a deal by July 21, according to Canada’s Department of Finance.
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