The United States will immediately resume trade talks with Canada after Ottawa scrapped its digital services tax (DST) aimed at U.S. technology companies, White House economic adviser Kevin Hassett said Monday.

"Absolutely,” Hassett told Fox News when asked if talks would restart. "President Trump asked the Canadians to take the tax off at the G7 meeting in Canada. It’s something they’ve studied, now they’ve agreed to it, and for sure, that means we can get back to the negotiations.”

The announcement followed Canada’s Sunday evening decision to revoke the DST, which had been a major sticking point in bilateral discussions. U.S. President Donald Trump had announced on June 27 that trade negotiations with Canada were terminated "effective immediately” due to what he called an "egregious” tax on U.S. firms.

Canadian Prime Minister Mark Carney confirmed the policy reversal in a statement, saying the move would support "a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis.”

Carney added that Canada’s new government remains committed to securing a deal that advances the interests of Canadian workers and businesses. "In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” he said.

The developments mark a notable shift following weeks of escalating rhetoric and underline renewed efforts by both sides to restore economic cooperation amid broader talks on a redefined trade and security framework.