The United States will resume trade negotiations with Canada immediately after Ottawa scrapped its digital services tax targeting U.S. technology firms, White House economic adviser Kevin Hassett said on Monday.

Canada scrapped its controversial digital services tax after President Trump said he was suspending trade talks with Canada last week. President Emmanuel Macron of France criticized tariffs levied by powerful nations as “blackmail.

Canada has scrapped a tax on big US technology firms, just hours before it was due to come into force, to allow trade talks between the two countries to restart. On Friday, US President Donald Trump called off negotiations over a trade deal, describing the tax as a "blatant attack", and threatened higher tariffs on imports from Canada.