TORONTO — Canada is dropping 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.

“Canada currently has the best trade deal with the United States. And while it’s different from what we had before, it’s still better than that of any other country,” Carney said.

Carney and U.S. President Donald Trump spoke on the phone Thursday and Carney met with his Cabinet on Friday before making the announcment.

The move is designed to reset trade talks between the two countries. The USMCA is up for review in 202

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