The United States will restart trade negotiations with Canada following Ottawa’s decision to scrap a planned digital services tax aimed at U.S. tech companies, White House economic adviser Kevin Hassett confirmed on Monday.
“Absolutely,” Hassett said during an exchange with media when asked if talks would resume. He noted that President Donald Trump had urged Canada to drop the tax during the recent G7 summit held in Canada. “They’ve studied it, they’ve now agreed to withdraw it, and that definitely clears the path for renewed negotiations,” Hassett added.Canada’s finance ministry announced late Sunday that the country would suspend its plans to implement the new tax—originally set to take effect on Monday—in a move designed to revive stalled trade talks with Washington. Prime Minister Mark Carney and President Trump are expected to resume negotiations with the goal of reaching a deal by July 21. “Thank you Canada for removing your Digital Services Tax, which would have hindered American innovation and jeopardized any potential trade agreement,” U.S. Commerce Secretary Howard Lutnick posted on X (formerly Twitter). Markets responded positively, with Wall Street stocks reaching new record highs on Monday morning amid rising optimism over U.S. trade talks with major partners, including Canada. U.S. Treasury Secretary Scott Bessent also expressed hope for swift progress, hinting at the possibility of “a flurry” of trade agreements before a July 9 deadline.
After that date, recently lowered U.S. tariffs on imports are set to revert to the higher rates announced by Trump on April 2—ranging from 11% to 50%.
