Canada has scrapped a tax on big US technology firms, just hours before it was due to come into force, to allow trade talks between the two countries to restart. On Friday, US President Donald Trump called off negotiations over a trade deal, describing the tax as a "blatant attack", and threatened higher tariffs on imports from Canada.

Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday in a bid to advance stalled trade negotiations.

Canada will rescind a digital services tax – a way of taxing online companies – its government said on Sunday, in a bid to restart trade negotiations with the United States.