The change will go into effect on Sept. 1, Carney added, saying he believes Canada has the best trade deal out of all of the countries working with the U.S.

Leaders in the distilled spirits industry said the announcement marks a positive step forward, but noted there is more progress to be made.

On July 27, Ursula von der Leyen, the president of the European Commission and President Trump agreed to a deal that included a 15% tariff on most goods from the EU.

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.

TORONTO (AP) — Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact, a government official familiar with the matter said Friday.

Catherine Cobden, president and CEO of the Canadian Steel Producers Association, said Thursday that Ottawa should impose a 50 per cent retaliatory tariff on all U.S. steel, including "immediately ending the ill-advised April reprieve" American steel used in manufacturing and processing.