Trade talks between the US and Canada resumed after Ottawa rescinded its plan to tax US technology firms, Canadian Prime Minister Mark Carney said on Sunday The news follows an announcement by US President Donald Trump on Friday, where he said he was suspending trade talks with his country鈥檚 northern neighbour over its plan to continue with its tax on technology firms. Trump described this tax as a 鈥渄irect and blatant attack on our country鈥 which was set to go into effect on Monday. Both the American and Canadian leaders reportedly spoke on the phone on Sunday, and Carney鈥檚 office said they agreed to resume negotiations. The Canadian government said 鈥渋n anticipation鈥 of a trade deal 鈥淐anada would rescind鈥 the deal. 鈥淭oday鈥檚 announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month鈥檚 G7 Leaders鈥 Summit in Kananaskis,鈥 Carney said in a statement. Trump recently travelled to Canada for a G7 summit in Alberta, where Carney said both countries had set a 30-day-deadline for trade talks. Canada鈥檚 Digital Services Tax was due to his companies like Amazon, Google and Meta with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving US companies with a $2 billion (鈧1,71 billion) US bill due at the end of the month. Trump鈥檚 announcement on Friday was the latest in the trade war he鈥檚 launched since taking office for a second term in January. Progress with Canada has been a roller coaster, with Trump repeatedly suggesting it should be absorbed as a US state.