Canada said that it is rescinding its digital services tax that would have targeted U.S. technology firms, in a bid to restart trade talks between Washington and Ottawa.

Canada rescinds digital services tax, prompting resumption of trade talks with the US after Trump's retaliation threat.

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.

Trump's announcement on Truth Social accused Canada of "copying the European Union" with the "egregious" tax.

Canadian Prime Minister Mark Carney says trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms.