Canada is dropping 25 percent tariffs on American goods under the free-trade agreement.

The move follows a discussion between Prime Minister Mark Carney and U.S. President Donald Trump Thursday.

The U.S. committed to not enforcing tariffs on Canadian exports under the agreement.

Carney says our country currently has the best trade deal with the U.S.

“And more than 85 percent of Canada-U.S. trade is now tariff free. While it’s different from what we had before, it is still better than any other country in the world,” said the Prime Minister.

Carney adds that tariff rates for other countries are up to 16 percent, while Canada’s is 5.6 percent.

“We have the lowest tariff rate among all United States trading partners.”

However, tariffs remain on steel, aluminum and automobiles.

The changes go into effect on September 1.