Canada will rescind a tax on big US technology firms, just hours before first payments were due, 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 rescinds digital tax targeting US tech giants hours before payments begin, aiming to restart suspended cross-border trade talks.

U.S. President Donald Trump is threatening to end trade talks with Canada and impose additional tariffs within a week in retaliation for Ottawa’s digital services tax. Adrian Morrow reports that in a Truth Social post today, Trump abruptly broke off talks, which Prime Minister Mark Carney has said were aimed at reaching a deal by late July.