The government said on Sunday night that it would cancel its tax on American technology companies, handing a victory to the Trump administration.

Ottawa announced it was rescinding a tax on technology firms generating revenue from Canadians just hours before it was to take effect in an effort to move forward trade negotiations with the United States.

Ottawa said Prime Minister Mark Carney and President Donald Trump had agreed to resume negotiations on a trade agreement and would aim to reach a deal by July 21.