The United States will resume trade negotiations with Canada immediately after Ottawa scrapped its digital services tax targeting U.S. technology firms, White House economic adviser Kevin Hassett said on Monday.

But it wasn't just Trump pushing Carney to reconsider the tax. A nonprofit representing CEOs and leaders of some of Canada's biggest businesses, the Business Council of Canada, had warned that Carney defending the tax risked "undermining Canada’s economic relationship with its most important trading partner," Al Jazeera reported.

Canada scrapped its controversial digital services tax after President Trump said he was suspending trade talks with Canada last week. President Emmanuel Macron of France criticized tariffs levied by powerful nations as “blackmail.