Canada is preparing to lift retaliatory tariffs on a wide range of U.S. products, a move aimed at easing trade tensions with the Trump administration and bringing policy more in line with the North American trade deal.

Prime Minister Mark Carney is expected to announce the decision Friday following a meeting with his cabinet. According to sources familiar with the matter, Ottawa will adjust its tariff policy to more closely mirror measures in place in the United States.

The change will remove 25 percent tariffs on a broad list of U.S. goods exported to Canada, provided they fall within the framework of the U.S.-Mexico-Canada Agreement. However, tariffs will continue for products made from steel and aluminum, as well as cars and other vehicles. President Donald Trump has imposed levies on all these categories.

The decision is intended to help set the stage for an upcoming review of the U.S.-Mexico-Canada Agreement (USMCA), expected in the coming months. Sources told Bloomberg that Canada’s revised tariff approach will now shift attention to the central importance of that trade pact.

The move marks a notable policy shift for Canada, which had been among the first countries to impose swift retaliatory tariffs against the United States, a step that drew sharp criticism from President Trump and Commerce Secretary Howard Lutnick. The announcement comes after a phone call between Prime Minister Mark Carney and Trump — their first direct conversation in several weeks.

Canada first imposed retaliatory tariffs in early March, levying a 25 percent duty — valued at $21.7 billion — on a wide range of U.S. goods, including orange juice, wine, clothing, and motorcycles. A second round of measures followed in response to President Trump’s decision to place tariffs on foreign steel and aluminum.

Trump later raised the tariffs on steel and aluminum to 50 percent, a move that drew a sharp warning from Prime Minister Mark Carney, who threatened additional retaliation but ultimately chose not to proceed.