06:10 AM EDT, 06/30/2025 (MT Newswires) -- Canada announced late on Sunday that it is rescinding a digital services tax in a bid to salvage trade discussions with the U.S. after President Trump paused talks on Friday, The Wall Street Journal reported.

It noted Canada's finance department was set to collect billions of dollars from U.S. tech companies on Monday, when payments were due under a digital services tax that Canada's Liberal government implemented last year, under former Prime Minister Justin Trudeau.

On Sunday, the report said, the government announced it would pause collections and introduce legislation in Parliament to rescind the tax, "in anticipation of a mutually beneficial comprehensive trade arrangement with the United States."

Canadian Prime Minister Mark Carney spoke with Trump on Sunday, said a spokeswoman for the Prime Minister's Office. The two leaders decided to move forward with trade discussions with a goal of reaching agreement by July 21.

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