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 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.

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

Canada’s request for Chinese surveillance equipment firm Hikvision to close local operations will “damage” bilateral trade, complicating recent efforts to improve ties between the countries, China’s Ministry of Commerce has said.

President Marcos and Canadian Prime Minister Mark Carney discussed on Thursday night ways to enhance trade and defense relations between the Philippines and Canada.