Another major economy and country backs down, and Trump wins again - as on Friday Canadian Prime Minister Mark Carney announced that Canada will drop its retaliatory tariffs in step with the United States as both countries work to de-escalate their trade dispute.

Carney in a Friday press conference said the US side clarified it would not apply tariffs to Canadian products that adhere to the terms of the US-Mexico-Canada free trade agreement. Even Politico has starkly described it as Carney backs down in a major concession:

"We have the best deal of anyone in the world right now," Carney told reporters in Ottawa, noting that the average U.S. tariff rate on Canadian goods is 5.6 percent, the lowest among America’s trading partners. "Today, the Government of Canada is harmonizing its tariffs with the U.S."

However, he noted that some duties, particularly on steel, aluminum, and automobiles, will still remain in effect. Other sources quoted in various reports have also indicated this.

"In this context and consistent with Canada’s commitment to USMCA, I am announcing today that the Canadian government will now match the United States by removing all of Canada’s tariffs on US goods specifically covered under USMCA," said Carney, previewing that the change will take effect on September 1.

"Canada and the US have now re-established free trade for the vast majority of our goods," he added.

The White House hailed the move: "We welcome this move by Canada, which is long overdue. We look forward to continuing our discussions with Canada on the Administration's trade and national security concerns," a Trump admin official said. And more via breaking Canadian media reports:

• U.S. President Donald Trump commended the tariff removal, calling it "nice" and saying he wanted to "be good to Canada."

• Trump raised tariffs on some Canadian goods to 35 per cent on Aug. 1.

• The Trump administration said Canada's rate was being hiked in response to fentanyl trafficking and Canada's earlier decision to hit back with counter-tariffs.

The Canadian dollar is strengthening notably against the US dollar today (helped by Powell's words and Carney's actions)...

Reuters has reviewed of the transition from Trudeau:

Carney's predecessor as prime minister, Justin Trudeau, imposed 25% tariffs on $21 billion in goods imported annually from the U.S. on March 6 in response to Trump's initial duties.

The C$30 billion was part of an overall retaliation plan to target C$155 billion worth of imported goods from the U.S., though the remaining C$125 billion has been delayed.

Carney had repeatedly claimed he had a mandate from the public to 'stand up to' the Trump administration, but alas he's the latest in a line of global leaders to instead sit down amid the immense tariff and trade pressure.