Ottawa announced it was rescinding a tax on technology firms generating revenue from Canadians just hours before it was to take effect in an effort to move forward trade negotiations with the United States.

OTTAWA (Reuters) -Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States.

Canada rescinded the Digital Services Tax just hours before it was to go into effect, backing down after President Trump had ended trade talks over the issue.