Trade talks between the United States and Canada are set to resume after Ottawa dropped its controversial digital services tax targeting American tech giants. The move comes just hours before the tax was due to be implemented.

White House economic adviser Kevin Hassett confirmed on Monday that negotiations would restart immediately. “Absolutely,” he said during an appearance on Fox News when asked about the talks.

Canada’s decision to halt the 3% digital tax—aimed at major firms like Amazon, Google, Apple, and Meta—was announced late Sunday. Prime Minister Mark Carney and U.S. President Donald Trump are now expected to finalize a new trade agreement by July 21.

“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation,” U.S. Commerce Secretary Howard Lutnick posted on X, calling the tax a potential deal breaker.

Markets responded positively, with Wall Street hitting record highs Monday morning amid renewed trade optimism. Treasury Secretary Scott Bessent hinted at a “flurry” of deals before a July 9 deadline, after which new tariffs—ranging from 11% to 50%—may be enforced.

The talks had previously collapsed after Trump slammed the digital tax as a “blatant attack” on U.S. interests. He had threatened new tariffs on Canadian goods, sparking fears of renewed trade tensions.

Canada’s finance ministry said the tax, originally announced in 2020, was intended to address gaps in taxing digital revenues but emphasized the country’s preference for a multilateral solution.

Canadian business leaders welcomed the rollback, calling it a win for consumers and trade stability. Canada remains the second-largest U.S. trading partner, with over $760 billion in two-way trade last year.