ISTANBUL

US President Donald Trump's top economic advisor, Kevin Hassett, stated Monday that the US is "immediately" resuming trade negotiations with Canada after it agreed to stop enacting the digital services tax (DST).

Asked if they would start the trade talks with Canada after they conceded with the DST, Hassett told Fox News: "Absolutely."

He said that Trump asked Canadians to retract the tax at the G7 meeting.

"It's something that they've studied; now they've agreed to it, and for sure, that means that we can get back to the negotiations," Hasset noted.

On late Sunday, Canada announced that it would rescind its DST and resume negotiations with the US with a view towards reaching a trade deal by July 21.

“Today’s announcement will support a resumption of negotiations toward the July 21, 2025 timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Canadian Prime Minister Mark Carney said in a statement.

“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” he said.

The developments came after Trump announced on June 27 that the US would terminate trade negotiations with Canada because of the DST.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump said previously.