WASHINGTON (TNND) — Trade talks between the United States and Canada will resume on Sunday night after Canadian Prime Minister Mark Carney said the country's plan to tax U.S. technology firms was rescinded.

The update follows President Donald Trump's suspension of talks on Friday, which he called "a direct and blatant attack on our country."

“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also,” Trump wrote on Truth Social. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.”

“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,” he added.

The Digital Services Tax Act was set to take effect on Monday, but "in anticipation of a mutually beneficial comprehensive trade arrangement," Carney and Trump agreed negotiations will resume "with a view towards agreeing on a deal by July 21, 2025."

Carney visited Trump in May at the White House, where he was polite but firm about Canada not becoming a U.S. state. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks.

The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion U.S. bill due at the end of the month.

Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed on goods from America’s neighbor.

Trump has imposed 50% tariffs on steel and aluminum as well as 25% tariffs on autos. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire.

Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump’s first term.

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Editor's note: The Associated Press contributed to this article.