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Core Viewpoint - Canada has announced the cancellation of its digital services tax to advance broader trade negotiations with the United States, aiming to reach an agreement by July 21 [2][3]. Group 1: Trade Negotiations - Canada will resume trade negotiations with the U.S. following the cancellation of the digital services tax, with a target to finalize an agreement by July 21 [2][3]. - Canadian Prime Minister Carney and U.S. President Trump have agreed to restore negotiations, emphasizing the importance of the agreement for Canadian workers and businesses [3]. - The cancellation of the digital services tax is seen as a significant step towards improving trade relations and creating jobs in Canada [3]. Group 2: Digital Services Tax - The digital services tax was initially proposed by former Prime Minister Trudeau and was set to take effect on June 30, 2024, imposing a 3% tax on certain tech companies [7]. - The tax would apply to companies with global revenues exceeding $833 million and digital service revenues in Canada exceeding 20 million CAD (approximately 1.05 million RMB) [7]. - Major U.S. tech companies like Amazon, Apple, Google, and Uber would have been affected by this tax, leading to strong opposition from the U.S. government [7]. Group 3: U.S.-Canada Trade Relations - Canada is the second-largest trading partner of the U.S., purchasing $349.4 billion worth of U.S. goods and exporting $412.7 billion to the U.S. last year [6]. - Trump's administration had previously threatened to halt trade negotiations due to Canada's digital services tax, indicating the tax's significant impact on bilateral relations [4][5]. - The U.S. has historically viewed Canada's digital services tax as a direct attack on American tech giants, leading to ongoing disputes between the two nations [7].