Canada has scrapped its tax targeting Big Tech companies in the US after President Donald Trump threatened to cut off trade talks in response to the fee. On Sunday, the Canadian government announced that it will no longer implement the Digital Services Tax as it works to reach a trade deal with the US by July 21st.

The Canadian Government has reportedly acquiesced to U.S. President Donald Trump and removed the digital service tax that was supposed to go into effect on Monday.

Just hours before Canada's new Digital Services Tax was set to go into effect, the Canadian government announced that it rescinded the levy “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.