U.S. and Canada restart trade talks following conflict over digital services tax

White House economic adviser Kevin Hassett says the U.S. will immediately restart trade talks with Canada, now that Prime Minister Mark Carney's government has dropped Canada's digital services tax.

A spokeswoman for the Prime Minister's Office confirms trade talks have resumed.

U.S. President Donald Trump suspended trade talks with Canada on Friday over the tax.

Ottawa then announced late Sunday that it was dropping the tax following a phone call between Carney and Trump.

Hassett made the comments in an interview on Fox News, adding Trump asked Canada to drop the tax at the G7 meeting in Alberta earlier this month.

Hassett said the removal of the tax means Canada and the U.S. can get back to negotiations.

Picture Courtesy: AP Photo/Mark Schiefelbein