Canadian PM Backs Down on Digital Tax Amid Trade Tensions

Canadian Prime Minister Mark Carney has decided against imposing a digital services tax on U.S. technology firms, a decision he communicated to U.S. President Donald Trump during a phone call on Sunday night, according to the White House.

White House press secretary Karoline Leavitt commented on Monday that Carney 'caved' on the matter after Trump terminated trade discussions with Canada.

This development marks a significant shift in Canada-U.S. relations, as the digital tax had been a contentious topic amid broader trade negotiations.

(With inputs from agencies.)