Canada has scrapped its tax targeting Big Tech companies in the US after President Donald Trump threatened to cut off trade talks in response to the fee. On Sunday, the Canadian government announced that it will no longer implement the Digital Services Tax as it works to reach a trade deal with the US by July 21st.

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

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.