Canada has rescinded a costly tax that threatened to derail U.S. trade talks over the weekend.
On Friday afternoon, President Trump called off all trade talks with Canada after they held steady on their digital services tax, a Canadian duty levied against U.S. tech companies. The move left Canadian leadership scrambling. But late last night, Canada rescinded the tax, saying it was needed to keep communication flowing.
Prime Minister Mark Carney says talks have resumed. U.S. Commerce Secretary Howard Lutnick thanked Canadian officials just this morning, saying the tax would have been a deal breaker.
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