Canada will rescind a tax on big US technology firms, just hours before first payments were due, to allow trade talks between the two countries to restart. On Friday, US President Donald Trump called off negotiations over a trade deal, describing the tax as a "blatant attack", and threatened higher tariffs on imports from Canada.

Canada said it would rescind a digital-services tax in a bid to salvage trade discussions with the U.S. after President Trump paused talks on Friday. Canada’s finance department was set to collect billions of dollars from U.