(Darryl Dyck | The Canadian Press via AP)TORONTO — Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact, Prime Minister Mark Carney announced Friday. Canada ditches digital tax after tariff threat from Trump Canada scrapped a digital services tax that would have hit U.S. tech companies such as Google and Amazon after President Trump halted trade talks and threatened higher tariffs on Canadian imports. Former Prime Minister Justin Trudeau initially put on retaliatory tariffs in response to U.S. tariffs, but before the U.S. tariffs were applied the Trump administration exempted goods covered by the free trade deal. “Canada and the United States have reestablished free trade for the vast majority of our goods. Canada will retain our tariffs on steel, aluminum and autos as we work intensivily to resolve the issues there,” Carney said.