Canada's Prime Minister Mark Carney said on Friday that his country will drop some of its billions of dollars in retaliatory tariffs on US goods, though it will keep levies on autos, steel and aluminium.

It's down to the wire on U.S. President Donald Trump's threat to raise his tariff on Canadian goods entering the United States to 35 per cent.

Prime Minister Mark Carney indicated the move is meant to prepare the ground for the review of the US-Canada-Mexico free trade agreement.