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.

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

OTTAWA - Canada scrapped its digital services tax targeting U.S. technology firms just hours before it was due to take effect on Monday, in a bid to advance stalled trade negotiations with the U.S. Read more at straitstimes.