The White House has stated that Canada, under Prime Minister Mark Carney, rescinded its planned Digital Services Tax targeting American technology companies after pressure from U.S. President Donald Trump. White House Press Secretary Karoline Leavitt said that Canada "caved" to Trump by dropping the tax, which was seen as a potential threat to U.S. tech profits. Leavitt described Canada's decision to abandon the tax as a mistake and emphasized that the outcome was straightforward, attributing the reversal directly to Trump's influence. This development has led to the suspension of trade talks between the two countries.