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But the government is likely to keep 25% import taxes on U.S. steel and aluminum products, as well as its tariffs on U.S. automobiles.

The two leaders talked about “trade challenges, opportunities, and shared priorities in a new economic and security relationship between Canada and the U.S.,” according to a statement.

The U.S. lumber industry says financial support pledged by Canada to domestic forestry companies risks deepening the neighbors’ long-running trade dispute and may result in yet more import taxes.

Canadian Prime Minister Mark Carney said he wants to maximize the impacts of retaliatory tariffs on the U.S. but minimize the pain for Canadian businesses.

Prime Minister Mark Carney said Aug. 5 the guarantees will ensure forestry companies of all sizes can maintain and restructure their operations.

Prime Minister Mark Carney said his government is in trade talks with the Trump administration despite recent comments from Trump suggesting a deal with Canada wasn’t a priority.

“Canada will not accept a bad deal. Our objective is not to reach a deal whatever it costs,” Prime Minister Mark Carney told reporters after meeting with the country's provincial leaders.

The notoriously combative U.S. executive and vocal public supporter of President Donald Trump said July 21 that Carney and his cabinet should enact “significant” trade protections.

Canada Prime Minister Mark Carney believes trade negotiations with the U.S. will “intensify” but sees little evidence the Trump administration is willing to completely drop tariffs.

President Donald Trump said he was ending all discussions with Canada after claiming the country moved to implement a digital services tax, and threatened to impose a fresh tariff rate.