Canadian Prime Minister Mark Carney has received both criticism and praise on social media after announcing on Monday that he is dropping retaliatory tariffs introduced on U.S. goods that are covered under the Canada-United States-Mexico trade agreement (CUSMA).

Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact.

Prime Minister Mark Carney said Canada will lift its tariffs on U.S. goods that comply with a free trade pact but keep tariffs on U.S. steel, aluminum and autos.

Prime Minister Mark Carney is on his way to Germany for a key meeting with Chancellor Friedrich Merz, where trade and security talks will be of top priority.

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.

Prime Minister Mark Carney’s decision to remove many tariffs on imports from the US comes after a series of warnings from businesses and analysts that the levies were inflicting economic damage on Canada.

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

Canada is the lone Group of Seven economy that has failed to reach a tariff deal with the U.S. before Trump's deadline. Carney won an election in April, arguing his experience--as a former banker at Goldman Sachs and a central banker in two countries--made him the best person to navigate the economy through the Trump administration.