The Canadian government said “in anticipation” of a trade deal “Canada would rescind” the Digital Serves Tax. The plan to tax U.S. technology firms was set to go into effect Monday.

Carney said the tax had been dropped as "part of a bigger negotiation" and that Canada-US trade talks had resumed.

Prime Minister Mark Carney said Monday his move to drop Canada's digital services tax is part of the broader trade negotiation with the United States, even as the White House said Carney "caved" to U.