Canada has abruptly scrapped its plan to enforce a new digital service tax on American tech firms – days after President Trump blasted the “foolish” move as a “direct and blatant attack” on the United States.

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Canada has rescinded its digital services tax in a bid to advance trade negotiations with the U.S., Canada's finance ministry said in a statement on Sunday. Canadian Prime Minister Mark Carney and U.S.