Now

Trade negotiations between the United States and Canada are set to resume immediately after Ottawa decided to scrap its proposed digital services tax, which was aimed at major U.S. tech companies. The tax was scheduled to come into effect on Monday but was halted at the last moment, signaling a shift in Canada’s approach to resolve ongoing trade tensions. White House economic adviser Kevin Hassett confirmed that the move clears the way for renewed discussions, noting that President Donald Trump had urged Canadian officials to drop the tax during the recent G7 summit held in Canada.

Canada’s decision to pull back the contentious levy is seen as a strategic gesture to advance stalled trade talks with Washington. The proposed tax had drawn criticism from the U.S., which viewed it as unfairly targeting American digital giants. “It’s something that they’ve studied, now they’ve agreed to, and for sure, that means that we can get back to the negotiations,” Hassett said. The resumption of talks marks a hopeful turn in U.S.-Canada economic relations, which had been strained over digital policy and trade imbalances.