The White House said Monday that Canada “caved” to President Donald Trump by hastily rescinding the country’s digital service tax after the president threatened to close trade negotiations between the two nations, CNBC reported.

The administration’s top economic aides warned that the move sets a precedent for other countries considering similar taxes on American tech companies, and they promised to press the issue in ongoing trade talks.

White House press secretary Karoline Leavitt told reporters in a briefing that “It’s very simple: Prime Minister [Mark] Carney and Canada caved to President Trump and the United States of America,” adding that Canada reversed course at the last minute.

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