On Monday, White House National Economic Council Director Hassett said in a media interview that after Canada canceled its digital services tax, the US would “immediately resume” trade talks with Canada.
Meanwhile, White House Press Secretary Leavitt said at Monday’s daily briefing that Canadian Prime Minister Carney had “caved” to President Trump.
She said: “It’s simple. Prime Minister Carney and Canada have caved to President Trump and the United States.”
She stated that Trump “knows how to negotiate” and said that “every country on Earth needs to maintain a good trade relationship with the US.”
She said: “Canada’s imposition of a tax that would harm US-based tech companies was a mistake.”
On June 29, Canada’s Finance Ministry said in a press release that Prime Minister Carney and President Trump had agreed to resume negotiations, aiming to reach an agreement by July 21.
The Finance Ministry also announced that the planned digital services tax—which was to take effect on June 30—will be canceled in order to advance trade talks with the US.
The US has always opposed Canada’s plan to impose a digital services tax. On the 27th, Trump announced on social media that because Canada insisted on introducing the digital services tax targeting US tech companies, the US decided to immediately halt all trade talks with Canada.