U.S. trade talks resume after Canada rescinds tech tax in ‘clear victory’ for Trump

US president Donald Trump said on Friday that he is suspending commercial talks with Canada because of its plans to continue his strikes on technology companies, which he called “a direct attack and beatings on our country.”

The Canadian government said, “In anticipation,” to the commercial deal, “Canada will catch” a digital tax. The tax was appointed to enter into force on Monday.

Carney and Trump spoke on the phone on Sunday, and Carney’s office said they agreed to resume negotiations.

“The announcement of the resumption of negotiations today will be supported by July 21, 2025, a timetable at the Summit of the Group of Seven Group of this month in Kananchasis,” Carney said in a statement.

Carney Trump visited in May at the White House, where he was polite but firm. Trump traveled to Canada to get the 7 Group Set in Alberta, where Carney said that Canada and the United States have set a 30 -day date for commercial talks.

Trump said, in a post on his social media network last Friday, that Canada informed the United States that it is adhering to its plan to impose the digital services tax, which applies to Canadian and foreign companies that deal with online users in Canada.

Digital services tax, including Amazon, Google, Meta, Uber and Airbnb, were scheduled to strike with a 3 % tax on revenue from Canadian users. It could be applied retroactively, leaving American companies on an American bill worth $ 2 billion at the end of the month.

Daniel Bellland, a professor of political science at McGill University in Montreal, called on Carne’s retreat as a “clear victory” for Trump.

“At some point, this step may have become necessary in the context of commercial negotiations between Canada and the United States, but Prime Minister Carne has now acted to satisfy President Trump and make him agree to the resumption of these negotiations simply, a clear victory for both the White House and the large technology,” Belland said.

He said he made Carney look vulnerable to President Trump’s explosions.

“President Trump forced Coordinator Coordinator to do what Big Tech wanted exactly. The CEO of American Technology will be very happy with this result.”

Canadian Finance Minister François Philip also spoke with US Treasury Secretary Scott Payette on Sunday.

“The cancellation of the digital services tax will allow negotiations related to a new economic and security relationship with the United States to make vital progress,” Canadian Finance Minister Francois Philip said in a statement.

Trump’s announcement on Friday was the last deviation in the trade war he made since he took office for a second term in January. The progress with Canada was the rotating ship, starting with the American president who is flowing into the northern neighbor of the nation, which indicates repeatedly that it will be absorbed as an American state.

Canada and the United States are discussing a series of sharp definitions that Trump imposed on goods from the neighbor of America.

Trump has imposed a 50 % tariff on steel and aluminum as well as a 25 % tariff on cars. It also receives a 10 % tax on imports from most countries, although it can raise prices on July 9, after the negotiation period set by 90 days.

Canada and Mexico face a separate tariff of up to 25 % that Trump has placed in place under the auspices of stopping the smuggling of fentanel, although some products are still protected by the United States, Mexico and Canaea agreement for the year 2020 signed during the first period of Trump.