President Donald Trump greets Prime Minister of Canada Mark Carney, Tuesday, May 6, 2025, at the West Wing entrance of the White House. (Official White House Photo by Gabriel B Kotico)

Rob Gillies of the Associated Press reports that Canadian Prime Minister Mark Carney announced Sunday that trade talks with the U.S. have resumed after Canada agreed to rescind its planned Digital Services Tax, which was set to take effect Monday. The move follows U.S. President Donald Trump’s suspension of talks, calling the tax a “blatant attack.” Following a phone call between the two leaders, both sides agreed to restart negotiations, with a July 21, 2025, deadline set at the recent G7 summit in Alberta. Gillies writes:

Canadian Prime Minister Mark Carney said late Sunday trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms.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 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 Serves Tax. The tax was set to go into effect Monday. […]

Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks.

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