US President Donald Trump abruptly cut off trade talks with Canada on Friday over its tax targeting US technology firms, saying that it was a "blatant attack" and that he would set a new tariff rate on Canadian goods within the next week.
The tax was three per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022.
Carney's office said Carney and Trump have agreed to resume negotiations.
"Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis," Carney said in a statement.
Carney visited Trump in May at the White House, where he was polite but firm.
Trump travelled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks.
Canada is the second-largest US trading partner after Mexico and the largest buyer of US exports.
It bought $US349.4 billion ($A534.7 billion) of US goods last year and exported $US412.7 billion ($A631.6 billion) to the US, according to US Census Bureau data.
The Canadian government says "in anticipation" of a trade deal "Canada would rescind" the Digital Serves Tax.
Trump, in a post on his social media network last Friday, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada.
The tax was set to go into effect on Monday.
The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a three per cent levy on revenue from Canadian users.
It would have applied retroactively, leaving US companies with a $US2 billion ($A3.1 billion) US bill due at the end of the month.
Trump's announcement on Friday was the latest swerve in the trade war he's launched since taking office for a second term in January.
Progress with Canada has been a roller coaster, starting with the US president poking at the nation's northern neighbour and repeatedly suggesting it would be absorbed as a US state.
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