Canada’s Digital Services Tax has been axed after U.S. President Donald Trump shut down all trade negotiations over it.

The DST, enacted under former prime minister Justin Trudeau, is a federal tax applicable to revenues on digital advertising, social media, online marketplaces and certain sales or licensing of user data.

It would mainly affect large tech companies who operate in Canada but don’t otherwise pay tax on revenues generated in this country.

Foreign and domestic businesses that earned at least $20 million in annual profits in Canada would be subject to a 3% levy on revenue above that number, retroactive to Jan. 1, 2022.

Companies were required to register with the Canada Revenue Agency and to file their first DST returns on Monday.

But late on Sunday, Finance Minister François-Philippe Champagne announced that Canada would halt the DST “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”

Champagne said he intends to bring forward legislation soon to officially rescind the tax.

It follows Trump’s abrupt announcement Friday that he was suspending trade talks, saying the DST unfairly targeted U.S. companies like Amazon, Apple, Google and Meta.

With the DST cancelled, Prime Minister Mark Carney and Trump both said they had agreed to resume negotiations, with a view toward a deal by July 21.