The government said on Sunday night that it would cancel its tax on American technology companies, handing a victory to the Trump administration.

OTTAWA (Reuters) -Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States.

Ottawa announced it was rescinding a tax on technology firms generating revenue from Canadians just hours before it was to take effect in an effort to move forward trade negotiations with the United States.