TORONTO (AP) — Canada is dropping many of its retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact, Prime Minister Mark Carney announced Friday.

Carney 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, easing Canada's previous stance on holding the line on punitive tariffs until U.S. President Donald Trump relents more on those imposed by the U.S.

Some Canadian politicians and union leaders characterized Carney's move as capitulation, but the prime minister accentuated what he considered Canada's favorable position so far and said that the exemptions would jump-start further trade talks with Washingt

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