Canada has rescinded its digital services tax targeting US technology firms in a bid to advance trade negotiations with the US, Canada’s finance ministry said in a statement on Sunday, days after US President Donald Trump called off trade talks.Canadian Prime Minister Mark Carney and Trump will resume trade negotiations in order to agree on a deal by July 21, 2025, the ministry said.On Friday, Trump abruptly cut off trade talks with Canada over its tax targeting US technology firms, saying that it was a 鈥渂latant attack鈥 and that he would set a new tariff rate on Canadian goods within the next week.The tax was 3% of the digital services revenue a firm takes in from Canadian users above USD 20 million in a calendar year, and payments will be retroactive to 2022.Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports. It bought USD 349.4 billion of US goods last year and exported USD 412.7 billion to the US, according to US Census Bureau data.