Canadian Prime Minister Mark Carney called President Donald Trump last night to let him know that he would drop the tax, the White House press secretary said.

The White House said Monday that Canadian Prime Minister Mark Carney had "caved" to President Donald Trump, after Canada dropped a tax on US tech firms that prompted Trump to call off trade talks. Prime Minister Carney and Canada caved to President Trump and the United States of America," Press Secretary Karoline Leavitt said in a daily briefing.

The White House said Monday that Canadian Prime Minister Mark Carney had "caved" to President Donald Trump, after Canada dropped a tax on US tech firms that prompted Trump to call off trade talks. Prime Minister Carney and Canada caved to President Trump and the United States of America," Press Secretary Karoline Leavitt said in a daily briefing.

The tax would have seen US service providers such as Google and Amazon on the hook for a multi-billion-dollar payment in Canada by today.

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. "Absolutely," Hassett said on Fox News Channel when asked about the talks restarting. White House press secretary Karoline Leavitt told…

OTTAWA — Prime Minister Mark Carney said Monday his move to drop Canada's digital services tax is part of the broader trade negotiation with the United States, even as the White House said Carney "caved" to U.S. President Donald Trump.

The US will restart trade talks with Canada after Ottawa canceled a digital services tax aimed at American tech giants. Trump’s tough approach was credited for the move, which came just before the tax was to take effect. Both countries now aim to strike a deal by July 21.

Here is a roundup of stories from The Canadian Press designed to bring you up to speed...

Canada has rescinded its digital services tax in response to President Trump suspending trade talks with the aim of continuing negotiations. 

Less than 48 hours before Canada Day and in the face of annexation threats from the White House, the federal government dropped a bombshell.

After President Trump suspended trade talks with Canada over its controversial digital services tax, Ottawa scrapped it to get back to the negotiating table.

OTTAWA — Tech giants such as Amazon and Google will not have to shell out close to $2 billion as expected today, as Canada moved to cancel the controversial digital services tax on Sunday, just one day before the first payment was due.