<h1>Canada to lift retaliatory tariffs to match US exemptions under USMCA, protecting most goods from punitive duties</h1> A government official said Canada will rescind retaliatory tariffs to mirror United States exemptions under the US-Mexico-Canada trade agreement, adopting the U.S. carve-out that shields most goods from punitive duties. The change aligns Canadian measures with existing U.S. tariff exclusions for covered products and is expected to be announced by the prime minister. The official, speaking anonymously because they were not authorized to brief the media, described the move as matching the 2020 free trade pact's protections to avoid broader trade distortions.