After a brief standoff, trade talks between the U.S. and Canada are back on—but only because Canada dropped its proposed tax on big tech companies. President Trump had slammed the tax as an "attack" on the U.S. and halted negotiations, but Canada’s reversal smoothed things over (for now).

Editor’s Note: Trade spats between these neighbors are nothing new, but this one highlights how sensitive digital economy policies can be. Canada blinked first, but the tension shows how hard it is to balance national interests with keeping trade flowing—especially when tech giants are caught in the middle.