TORONTO — Canadian Prime Minister Mark Carney said late Sunday trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms. <\/p>\n
U.S. President Donald Trump said Friday that he was suspending trade talks with Canada<\/a> over its plans to continue with its tax on technology firms, which he called \u201ca direct and blatant attack on our country.\u201d <\/p>\n The Canadian government said \u201cin anticipation\u201d of a trade deal \u201cCanada would rescind\u201d the Digital Serves Tax. The tax was set to go into effect Monday.<\/p>\n Carney and Trump spoke on the phone Sunday, and Carney\u2019s office said they agreed to resume negotiations. <\/p>\n \u201cToday\u2019s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month\u2019s G7 Leaders\u2019 Summit in Kananaskis,\u201d Carney said in a statement. <\/p>\n Carney visited Trump<\/a> in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit<\/a> in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks.<\/p>\n Trump, in a post on his social media network last Friday, said Canada had informed the U.S. 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. <\/p>\n 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 U.S. bill due at the end of the month.<\/p>\n Daniel B\u00e9land, a political science professor at McGill University in Montreal, called Carney’s retreat a \u201cclear victory” for Trump. <\/p>\n “At some point this move might have become necessary in the context of Canada-US trade negotiations themselves but Prime Minister Carney acted now to appease President Trump and have him agree to simply resume these negotiations, which is a clear victory for both the White House and big tech,” B\u00e9land said. <\/p>\n He said it makes Carney look vulnerable to President Trump\u2019s outbursts.<\/p>\n \u201cPresident Trump forced PM Carney to do exactly what big tech wanted. U.S. tech executive will be very happy with this outcome,\u201d B\u00e9land said. <\/p>\n Canadian Finance Minister Fran\u00e7ois-Philippe Champagne also spoke with U.S. Treasury Secretary Scott Bessent on Sunday. <\/p>\n \u201cRescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,\u201d Canadian Finance Minister Fran\u00e7ois-Philippe Champagne said in a statement. <\/p>\n Trump\u2019s announcement Friday was the latest swerve in the trade war<\/a> he\u2019s launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the U.S. president poking at the nation\u2019s northern neighbor and repeatedly suggesting it would be absorbed as a U.S. state<\/a>.<\/p>\n Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed<\/a> on goods from America\u2019s neighbor.<\/p>\n