Mark Carney says change will go into effect on 1 September but tariffs on steel, aluminum and autos will remain

Canada will drop its counter-tariffs on some American goods in the coming days, Mark Carney has said, as the country’s prime minister looks to end a protracted trade war with longtime ally the United States.

From 1 September, the Canadian government will remove some levies on US goods that comply with the North American free-trade pact, a move meant to “match” how the White House treated Canadian goods. Levies on steel, aluminum and autos will remain in place.

The announcement comes one day after Carney and Donald Trump spoke on the phone.

In recent months, the US has upended global trade as it seeks to bring manufacturing jobs back and sign more favourable deals with trading partners.