Carney spoke with Trump Thursday in what the Canadian PM's office described as "a productive and wide-ranging conversation."

The new terms ending retaliatory tariffs will take effect on Sept. 1, Carney said. Canada will retain tariffs on steel, aluminum, and autos.

The move represents an about-face for Canada, which had been one of the few countries to punch back against President Trump’s protectionist agenda.

Canada is dropping its countertariffs on the American goods that are covered by the free trade agreement between the two countries, amid the ongoing trade war with the United States, Prime Minister Mark Carney said Friday.

By David Ljunggren and Promit Mukherjee OTTAWA (Reuters) -Canada will remove many retaliatory import tariffs on U.S. goods and intensify contacts with the United States on striking a new trade and security relationship,

Canada is the lone Group of Seven economy that has failed to reach a tariff deal with the U.S. before Trump's deadline. Carney won an election in April, arguing his experience--as a former banker at Goldman Sachs and a central banker in two countries--made him the best person to navigate the economy through the Trump administration.

Mark Carney and Donald Trump talked about trade and security. They want a new economic relationship. But trade is tense, with tariffs on both sides. Canada is upset about US tariffs. Anita Anand met Marco Rubio to discuss Ukraine and Gaza.