Toronto, Aug 22 (AP) Canada is dropping retaliatory tariffs to match US tariff exemptions for goods covered under the United States-Mexico-Canada trade pact, a government official familiar with the matter said Friday.

The official said Canada will include the carve-out that the US has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties.

The official spoke on condition of anonymity because they were not authorised to speak publicly ahead of the expected announcement by Canadian Prime Minister Mark Carney. (AP) GSP

Tariff carve-outs: Canada to match trade-pact exemptions, removing retaliatory duties on covered goods. Canada will align its tariff response with exemptions under the United States-Mexico-Canada trade pact by dropping retaliatory duties and incorporating the United States' tariff carve-out so that the majority of affected goods are shielded from punitive duties.