VIDEO: Canada and U.S. Reach Deal to Eliminate Steel and Aluminium Tariffs

The tariff standoff between Canada and the United States is finally over. 

Global Affairs Canada says the 25 per cent tariff on steel and 10 per cent levy on aluminum will be removed within two days -- removing a key hurdle in efforts to ratify the new North American trade pact.

Canada has also agreed to drop all of its retaliatory measures and legal actions at the World Trade Organization.

Word of the agreement began to trickle out amid reports that U.S. negotiators had backed off long-standing demands for a hard limit on imports of Canadian steel and aluminum, part of an effort to keep cheap Chinese product out of the country.

Late Friday morning, Trudeau and U.S. President Donald Trump wrapped up their third phone call in less than a week on the tariff dispute, including Canada's decision to retaliate with more than $16 billion of its own punitive levies on American products.

The agreement also states the U-S and Canada will establish a process for monitoring steel and aluminum trade between them.