Carney Caves To Trump Demands On Tech Tax — And Says Trade Talks Are Back On

Canadian Prime Minister Mark Carney says trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms.

TORONTO (AP) — Canadian Prime Minister Mark Carney said late Sunday trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms.

U.S. President Donald Trump said Friday that 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 says “in anticipation” of a trade deal “Canada would rescind” the Digital Serves Tax. The tax was set to go into effect Monday.

Carney’s office said Carney and Trump have 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.