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

Just hours before Canada's new Digital Services Tax was set to go into effect, the Canadian government announced that it rescinded the levy “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.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.