Canada PM's office said Carney and Trump have agreed to resume negotiations.
- Trade talks between Canada and the US have resumed after Canada withdrew its digital services tax plan
- Canada planned a 3% tax on revenue from online services like Amazon, Google, and Meta starting Monday
- US President Trump suspended talks after Canada initially insisted on the digital services tax
Canadian Prime Minister Mark Carney said late Sunday trade talks with US have resumed after Canada rescinded its plan to tax US technology firms.
US 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 Services 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.
Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled 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% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month.
Trump's announcement Friday was the latest swerve in the trade war he's 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 neighbor and repeatedly suggesting it would be absorbed as a US state.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
