Canada will scrap many of the 25% retaliatory tariffs it imposed on U.S. imports, Prime Minister Mark Carney announced in Ottawa on Friday. The rollback, effective 1 September, applies to all goods that meet the rules of the United States-Mexico-Canada Agreement (USMCA), and is aimed at easing trade frictions with Washington. Carney said the step mirrors a recent U.S. pledge to keep USMCA-eligible Canadian products duty-free and "re-establishes free trade for the vast majority of our goods." Duties on American autos, steel and aluminum—sectors Ottawa deems strategic—will stay in place while talks continue. Canada introduced counter-measures in March on about C$30 billion (US$21 billion) worth of U.S. products after the United States raised tariffs on Canadian steel, aluminum and other items. Thursday, Carney spoke by phone with President Donald Trump, who called the gesture "nice" and said it could restart negotiations ahead of the pact’s 2026 review. The White House welcomed the move as "long overdue," but Canada’s opposition Conservatives and major unions accused the government of backing down without securing relief for metals and auto makers. The Canadian dollar strengthened after the announcement, as businesses on both sides of the border anticipated lower import costs and a potential thaw in bilateral trade relations.