(MENAFN) In a significant breakthrough, Kevin Hassett, top economic advisor to US President Donald Trump, confirmed on Monday that trade discussions with Canada are "immediately" restarting following Canada's decision to halt its controversial digital services tax (DST).

Asked about the timing of these renewed negotiations after Canada’s reversal on the DST, Hassett told Fox News: "Absolutely." He explained that Trump had directly asked Canadian officials to backtrack on the tax during their discussions at the recent G7 summit.

“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,” Hassett added, signaling a fresh phase in trade relations between the two nations.

The announcement came late Sunday, with Canada confirming it would withdraw the DST and return to the bargaining table with the US. The goal is to finalize a trade agreement by July 21, 2025.

"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," stated Canadian Prime Minister Mark Carney in a formal 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,” Carney emphasized.

The move follows President Trump’s June 27 declaration to cut off trade discussions with Canada over the DST, marking a sharp turn in bilateral relations. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump had previously declared.

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