Canada will rescind a tax on big US technology firms, just hours before first payments were due, to allow trade talks between the two countries to restart, BBC reported.
On Friday, US President Donald Trump called off negotiations over a trade deal, describing the tax as a "blatant attack", and threatened higher tariffs on imports from Canada.
In response, Canada has said it will introduce legislation to remove the tax and would halt the collection of payments, which were due on Monday.
White House economic adviser Kevin Hassett told Fox News on Monday that negotiations between the North American neighbours would "absolutely" restart as a result, according to BBC.
