Canada is seeking to finalise a free trade deal with Southeast Asian nations as part of a push to expand into new markets, its top diplomat said, responding to the hefty tariffs imposed on it by the United States,

“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” Canadian Finance Minister François-Philippe Champagne said in a statement Sunday night.

Canada's decision to implement a Digital Services Tax (DST) has sparked a strong reaction from President Donald Trump, who sees it as a direct attack on the US. Despite the tension, Canada remains committed to negotiations,

Canada has abruptly scrapped its plan to enforce a new digital service tax on American tech firms – days after President Trump blasted the “foolish” move as a “direct and blatant attack” on the United States.

President Donald Trump has intensified his global tariff push, delaying a major hike until August 1 but introducing new copper duties and raising levies on Canada and Brazil, shaking up trade relations across continents.

Fourth of July party hosted by the U.S. ambassador to Canada occurred this year amid strained relations and resurgent Canadian patriotism.