Canada will drop retaliatory tariffs to match U.S. exemptions for goods covered by the United States-Mexico-Canada Agreement, Prime Minister Mark Carney said Friday, aligning Ottawa’s policy with Washington’s carve-outs under the 2020 pact.

“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.

The announcement followed a phone call Thursday between Carney and President Donald J. Trump and a Friday cabinet meeting. The government cast the step as a way to reset talks with Washington ahead of the USMCA’s 2026 review. Carney said U.S. commitment to the core of the pact means the average tariff rate on Canadian goods is among the lowest and that more than 85 percent o

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