Trade talks between the US and Canada resumed after Ottawa rescinded its plan to tax US technology firms, Canadian Prime Minister Mark Carney said on Sunday
The news follows an announcement by US President Donald Trump on Friday, where he said he was suspending trade talks with his country’s northern neighbour over its plan to continue with its tax on technology firms.
Trump described this tax as a “direct and blatant attack on our country” which was set to go into effect on Monday.
Both the American and Canadian leaders reportedly spoke on the phone on Sunday, and Carney’s office said they agreed to resume negotiations. The Canadian government said “in anticipation” of a trade deal “Canada would rescind” the deal.
“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.
Trump recently travelled to Canada for a G7 summit in Alberta, where Carney said both countries had set a 30-day-deadline for trade talks.
Canada’s Digital Services Tax was due to his companies like Amazon, Google and Meta with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving US companies with a $2 billion (€1,71 billion) US bill due at the end of the month.
Trump’s announcement on Friday was the latest in the trade war he’s launched since taking office for a second term in January. Progress with Canada has been a roller coaster, with Trump repeatedly suggesting it should be absorbed as a US state.
