Canadian Prime Minister Mark Carney said that commercial talks late Sunday have resumed after Canada canceled its plan to impose taxes on American technology companies.
US President Donald Trump said on Friday that he is suspending commercial talks with Canada because of its plans to continue its taxes on technology companies, which he called “a direct attack and strike on our country.”
Canadian Prime Minister Mark Carney listens, and President Donald Trump speaks during a collective photo at the 7 Group Summit, Monday, June 16, 2025, in Cananchasis, Canada.
AP Photo/Mark Schiesfelbein
The Canadian government said that “in anticipation” of a commercial deal “will cancel Canada” the digital tax. The tax was appointed to enter into force on Monday.
Carney and Trump spoke on the phone on Sunday, and Carney’s office said they agreed to resume negotiations.
“Today’s announcement will support the resumption of negotiations around 21 July 2025, a timetable at the Summit of the Group of Seven Group of this month in Kananskis,” Carney said in a statement.
Carney Trump visited in May at the White House, where he was polite but firm. Trump traveled to Canada to get the 7 Group Set in Alberta, where Carney said that Canada and the United States have set a 30 -day date for commercial talks.
Trump said, in a post on his social media network last Friday, that Canada informed the United States that it is adhering to its plan to impose the digital services tax, which applies to Canadian and foreign companies that deal with online users in Canada.
Digital services tax, including Amazon, Google, Meta, Uber and Airbnb, were to hit a 3 % tax on revenue from Canadian users. It could be applied retroactively, leaving American companies on an American bill worth $ 2 billion at the end of the month.
Daniel Bellland, a professor of political science at McGill University in Montreal, called on Carne’s retreat as a “clear victory” for Trump.
“At some point, this step may have become necessary in the context of commercial negotiations between Canada and the United States, but Prime Minister Carne has now acted to satisfy President Trump and make him agree to resume these negotiations, which is a clear victory for both the White House and great technology.”
He said he made Carney look vulnerable to President Trump’s explosions.
“President Trump forced Prime Minister Carney to do what Big Tech wanted exactly. The American Technology Executive will be very happy with this result.”
Canadian Finance Minister Franuis Philip also spoke with US Treasury Secretary Scott Payette on Sunday.
“The cancellation of the digital services tax will allow new economic and security negotiations with the United States to achieve vital progress,” Canadian Finance Minister Franuis Philip said in a statement.
Trump’s announcement on Friday was the last deviation in the trade war he made since he took office for a second term in January. The progress with Canada was the rotating ship, starting with the American president who is flowing into the northern neighbor of the nation, which indicates repeatedly that it will be absorbed as an American state.
Canada and the United States are discussing a series of sharp definitions that Trump imposed on goods from the neighbor of America.
Trump has imposed a 50 % tariff on steel and aluminum as well as a 25 % tariff on cars. It also receives a 10 % tax on imports from most countries, although it can raise prices on July 9, after the negotiation period set by 90 days.
Canada and Mexico face a separate tariff of up to 25 % that Trump has placed in place under the auspices of stopping the smuggling of fentanel, although some products are still protected by the United States, Mexico and Canaea agreement for the year 2020 signed during the first period of Trump.
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