Canada Hands Trump a Win on Trade

Canadian Prime Minister Mark Carney said late Sunday trade talks with US have resumed after Canada rescinded its plan to tax US technology firms, the AP reports. US President Trump said Friday that he was suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called "a direct and blatant attack on our country." The Canadian government said "in anticipation" of a trade deal "Canada would rescind" the Digital Services Tax. The tax was set to go into effect Monday. Carney and Trump spoke on the phone Sunday, and Carney's office said they agreed to resume negotiations.

"Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis," Carney said in a statement. Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks. Daniel Béland, a political science professor at McGill University in Montreal, called Carney's retreat "a clear victory for both the White House and big tech," making Carney look vulnerable to Trump's outbursts.