President Donald Trump had suspended trade talks with Canada last week after labeling the country’s Digital Service Tax as a “blatant attack” on the U.S. and its tech giants.
Key Facts
In a statement issued late on Sunday, the Canadian government said it would “rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
The decision to rescind the DST—the first payments for which were due on Monday—will have to be approved by Canada’s parliament, and the statement said the country’s Finance Minister François-Philippe Champagne will “soon bring forward legislation” to do so.
As the legislation moves through the parliament, the finance ministry has decided to halt DST collection starting Monday.
Canadian Prime Minister Mark Carney’s office told various outlets that he spoke with Trump on Sunday to discuss rescinding the tax, and both leaders intend to reach a trade agreement by July 21.
