Canada's Prime Minister Mark Carney said on Friday that his country will drop some of its billions of dollars in retaliatory tariffs on US goods, though it will keep levies on autos, steel and aluminium.

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.

Mexico has capitalized on its role within the United States-Mexico-Canada Agreement (USMCA), which partially mitigates the impact of tariffs. This agreement has enhanced the competitiveness of vehicles assembled south of the Rio Grande, offering an attractive alternative to Canadian consumers and businesses.

The Trump administrations tariffs on Canada are impacting businesses in Bellingham. Last month, the city's Chamber of Commerce reported that more than half of surveyed businesses saw a drop in sales due to a drop in Canadian tourism.

The sitting legislator stepped down to allow Poilievre to run in his seat, thereby allowing him to return to the House of Commons.

America's effective tariff rate ticked down to 16% in July from 17% earlier in the month, Fitch Ratings said, thanks to a surge in tariff-free imports from Canada and Mexico under the USMCA trade pact.

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.