The federal government announced late Sunday evening it is rescinding the digital services tax, days after U.S. President Donald Trump demanded it gone and cut off Canada-U.S. trade negotiations, Reuters reported.

In a press release, the federal government said it would rescind the tax "in anticipation of a mutually beneficial comprehensive trade arrangement with the United States."

"Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025," the press release added.