Canada axes digital services tax in push to advance trade talks with U.S.

Canada has announced that it will rescind its digital services tax to advance trade negotiations with the US. The move comes after President Trump cited the tax as a reason for ending trade talks with Canada and threatening to impose tariffs on Canadian goods. Trump and Canadian Prime Minister Mark Carney have agreed to resume negotiations with the goal of reaching a deal by July 21. The digital services tax, which was set to be collected on Monday, will be halted, and legislation will be introduced to formally rescind the tax. The tax was imposed on US tech firms, and Trump had demanded its removal as a condition for continuing trade talks. In a statement, Carney said that Canada's goal is to reach an agreement that benefits Canadian workers and businesses. Trump had described Canada as "very nasty to deal with" in a Fox News interview earlier in the day. The US administration did not immediately respond to requests for comment on the development. The move is seen as a significant concession by Canada to salvage trade talks with the US. The outcome of the negotiations remains to be seen, with a deal hoped for by July 21.