Canada will roll back many of its retaliatory tariffs on U.S. goods, Prime Minister Mark Carney said Friday, calling the step an olive branch to Washington after months of escalating trade tensions. Starting Sept. 1, Ottawa will remove the 25% counter-duties on a broad range of American consumer products that meet U.S.–Mexico–Canada Agreement rules. The change covers roughly half of the C$30 billion (US$21.7 billion) in imports hit by Canada’s March tariff list, lifting levies on items such as orange juice, clothing and motorcycles. Carney said the move brings Canada’s tariff regime in line with U.S. exemptions and aims to reset the relationship before the pact’s mandatory review in 2026. Tariffs of 25% on U.S. steel, aluminum and automobiles will stay in place while both sides “intensify discussions” on those strategic sectors. The announcement follows a phone call between Carney and President Donald Trump on Thursday and comes three weeks after Washington raised duties on certain Canadian exports to 35%. A White House official welcomed the decision and said further talks on trade and national-security issues are planned.