Toronto – Canadian Prime Minister Mark Carney said the trade talks with the US late Sunday have resumed its plan to impose tax on Canadian American technology firms.

US President Donald Trump said on Friday that he was suspending business talks with Canada over a plan to continue with his tax on technology firms, which he called “a direct and clear attack on our country”.

The Canadian government stated that “anticipation of a business deal” “Canada” serves “digital tax”. The tax was determined to be implemented on Monday.

Carney and Trump spoke over the phone on Sunday, and Carney’s office said they agreed to resume the conversation.

Carney said in a statement, “Today’s announcement will support the resumption of negotiations from July 21, 2025, the schedule will be set at this month’s G7 Leaders Summit.”

Carney visited Trump at the White House in May, where he was humble but firm. Trump traveled to Canada for the G7 Summit in Alberta, where Carney said that Canada and the US had set a 30 -day time limit for trade talks.

Trump said in a post on his social media network last Friday that Canada had informed the US that it was clinging to his digital service tax plan, which applies to Canada and foreign businesses that are engaged with online users in Canada.

Digital Services Taxes were with 3% levy on revenue from Canada users due to hit companies including Amazon, Google, Meta, Uber and AirBNB. This would have applied retrospective, leaving American companies with $ 2 billion US bills at the end of the month.

Daniel Belan, a political science professor at McGill University in Montreal, called Carney Retreat “clear victory” for Trump.

“At some point this step may be necessary in the context of Canada-American trade talks, but Prime Minister Carney now worked to please President Trump and agreed to resume these dialogues, which is a clear victory for both the White House and Big Tech,” Belland said.

He said that it makes Carney sensitive to President Trump’s wrath.

“President Trump forced PM Carney to do what Big Tech wants. American tech executives would be very happy with this result,” Belland said.

Canadian Finance Minister François Filip Champagne also spoke with American Treasury Secretary Scott Besant on Sunday.

Canadian Finance Minister Finance Film-Filip Champagne said in a statement, “Save the digital services tax will allow the interaction of a new economic and security relations with the United States to make significant progress.”

Trump’s announcement was the latest heaven in the trade war launched since taking over for a second term in January on Friday. Progress with Canada has been a roller coaster, poking in the northern neighbor of the country with the US President and repeatedly suggests that it will be absorbed as an American state.

Canada and America are discussing to make a series of Trump imposed on goods from the US neighbor.

Trump has also applied 25% tariffs on the auto along with 50% tariff on steel and aluminum. He is also levying 10% tax on imports from most countries, although he can increase rates on 9 July, it will end after the 90-day conversation period.

Canada and Mexico face individual tariffs as 25%, which Trump has made it to the auspices of preventing Phantanel smuggling, although some products are still signed during Trump’s first tenure under the 2020 US-Maxico-Kanada Agreement.