Carney said the commitment of the U.S. to the core of USMCA means the U.S. average tariff rate on Canadian goods remains one of its lowest, and that over 85% of Canada-U.S. trade continues to be free of tariffs. Canadian and Mexican companies can claim preferential treatment under the USMCA.

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.

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

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,

Prime Minister Mark Carney and U.S. President Donald Trump had a 'productive and wide-ranging conversation,' Carney’s office said in a statement.

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.

Mark Carney has been accused of a “blatant betrayal” of women’s rights after the Canadian prime minister intervened to try and block a strike by 10,000 flight attendants.