Over the weekend, Donald Trump claimed the tax was a "direct and blatant attack" on US tech companies and terminated the trade talks while threatening to impose a new tariff rate on Canadian goods by the 4th of July.

Canada scrapped a digital services tax that would have hit U.S. tech companies such as Google and Amazon after President Trump halted trade talks and threatened higher tariffs on Canadian imports.

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