The powerful chief lobbyist for US tech giants has drawn a sharp distinction between Canada’s digital services tax and Australia’s bid to force platforms to pay local news publishers, signalling the US may not take as hardline a stance against Labor’s agenda.

US President Donald Trump last week suspended tariff talks with Canada over its digital services tax, which he labelled “a direct and blatant attack” on the US. The hard ball negotiating tactic worked, with Canada abandoning the measure on the first day it was due to be paid.