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Canada reportedly announced on Friday that it is dropping the 25% retaliatory tariffs on many U.S. goods, with the new changes set to go into effect from September 1.

According to a CNBC report, Prime Minister Mike Carney stated in a press conference that levies on automobiles, steel, and aluminum will remain in place.

“As we work intensively with the United States, our focus is squarely on the strategic sectors,” Carney said, according to the report. His latest comments follow hints earlier this month that his government is considering dropping tariffs on some goods if it would help Canadian industries better deal with the trade war with the U.S.

A White House official called the decision “long overdue,” the report added. “We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns,” the official said.

In July, President Donald Trump imposed 35% tariffs on Canadian goods not covered under the United States-Mexico-Canada Agreement (USMCA), which went into effect on August 1. The Trump administration applied these levies in response to fentanyl trafficking from Canada into the U.S., and the Canadian government’s decision to hit back with retaliatory tariffs.

Earlier on Thursday, the U.S. and European Union announced tariff details for the automobile and pharmaceutical industries, inching closer to formalizing the trade deal announced in July.

Meanwhile, U.S. equities surged in Thursday’s midday session following Federal Reserve Chair Jerome Powell’s Jackson Hole speech. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 1.47%, while the Invesco QQQ Trust (QQQ) gained 1.42%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

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