President Donald J. Trump has once again demonstrated the power of America First diplomacy — this time forcing Canada to backtrack on its controversial digital services tax that targeted U.S. tech giants.

Late Sunday, Prime Minister Mark Carney’s government announced that it would rescind the Digital Services Tax, a 3% levy that had been imposed on large online companies — including American firms like Amazon, Meta, Google, and Apple. The reversal comes just days after President Trump ended all trade negotiations with Canada in direct response to the tax.

According to a statement from Canada’s Department of Finance, the move was made “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.” The Canadian government added that the June 30th collection of the tax is officially canceled, and legislation is underway to repeal the entire Digital Services Tax Act.

President Trump responded to the tax last week with decisive action — halting trade discussions and blasting the move as a copycat of the European Union’s failed economic model.

“They are obviously copying the European Union, which has done the same thing… Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote on Truth Social.

The pressure worked. Now, Canadian Prime Minister Carney is coming back to the table. According to Fox Business, Carney and President Trump have agreed to resume negotiations with the goal of reaching a deal by July 21, 2025.

Trump has made it clear that Canada’s economic games won’t go unpunished. His administration is expected to notify Ottawa this week about the tariffs Canada will now be required to pay to access the U.S. market — including 50% duties on steel and aluminum, which were reinstated in April.

In a separate post, Trump described Canada as “a very difficult Country to TRADE with,” citing the nation’s massive tariffs on U.S. dairy products, some as high as 400%.

The diplomatic tension reached new heights earlier this year when President Trump revealed details of the United States’ upcoming “Golden Dome” missile defense system, a $175 billion project that will protect the continental U.S. — and potentially Canada — from hostile missile threats.

Trump said that Canada had expressed strong interest in joining the program, but he offered the nation an unprecedented deal: join the U.S. as the 51st state, and the defense system comes free. Stay sovereign, and the price tag is $61 billion.

“I told Canada… it will cost $61 Billion Dollars if they remain a separate, but unequal, Nation, but will cost ZERO DOLLARS if they become our cherished 51st State. They are considering the offer!” Trump said on Truth Social.

Carney, who won office just last month on a campaign promising to resist Trump’s influence, has thus far rejected the idea — albeit under increasing pressure. Even King Charles III, Canada’s symbolic head of state, was compelled to deliver remarks to Parliament rejecting any absorption into the United States.

Still, Trump has made it clear that Canada’s security will be linked to American strength, whether Ottawa likes it or not.

“Canada has called us, and they want to be a part of it. So we’ll be talking to them; they want to have protection also,” Trump said of the Golden Dome project.

With trade talks now back on track — and Canada bending to Trump’s terms — the President has once again shown the world what leadership rooted in leverage, not apology, looks like.