TORONTO, ON — Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact, a government official familiar with the matter said Friday.

The official said Canada will include the carve-out that the U.S. has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties.

The official spoke on condition of anonymity because they were not authorized to speak publicly ahead of an expected announcement by Canadian Prime Minister Mark Carney .

The official said the move is designed to reset trade talks between the two countries. The USMCA is up for review in 2026, and the official called the trade pact a unique advantage for Canada at a time when it is clear

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