Over the weekend, Donald Trump claimed the tax was a "direct and blatant attack" on US tech companies and terminated the trade talks while threatening to impose a new tariff rate on Canadian goods by the 4th of July.

The United States will resume trade negotiations with Canada immediately after Ottawa scrapped its digital services tax targeting U.S. technology firms, White House economic adviser Kevin Hassett said on Monday.

Canada scrapped its controversial digital services tax after President Trump said he was suspending trade talks with Canada last week. President Emmanuel Macron of France criticized tariffs levied by powerful nations as “blackmail.