Canada is dropping retaliatory tariffs to align with U.S. exemptions for goods covered under the United States-Mexico-Canada Agreement, a government official said Friday.

The official said Canada will mirror the U.S. carve-out on Canadian goods under the 2020 trade pact, which shields most products from the duties.

The official spoke on condition of anonymity because they were not authorized to discuss the decision ahead of an expected announcement by Prime Minister Mark Carney.

Carney spoke with Trump on Aug. 21 in what Carney’s office described as “a productive and wide-ranging conversation” on trade and other issues.

This is a breaking news story. Updates to follow.

This article includes reporting by the Associated Press.