US to Resume Trade Talks After Canada Drops Digital Tax

The United States will resume trade negotiations with Canada immediately, following Canada’s decision to withdraw its digital services tax that had targeted major American technology companies.

White House economic adviser Kevin Hassett confirmed the development on Monday, stating that the move clears the way for renewed discussions between the two countries.

“Absolutely,” Hassett said during a television interview when asked whether trade talks would restart. He noted that President Donald Trump had raised concerns about the tax during the recent G7 summit held in Canada and urged Canadian officials to remove it.

“It’s something they’ve studied, and now they’ve agreed to drop it,” Hassett said. “That certainly means we can return to the negotiating table.”

The removal of the digital services tax, which had strained economic ties between the two nations, is seen as a key step in smoothing over tensions and accelerating bilateral trade cooperation.