Canada has also agreed to drop the tariffs it raised on goods imported from the U.S. in retaliation.
The two countries issued a joint statement on Friday confirming that they had agreed to eliminate the tariffs within 48 hours.
Several reports citing unnamed sources in the U.S. and Canada say the Trump administration also has reached a deal to remove metals tariffs from Mexico.
President Trump put a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum last year after a Commerce Department study found a surge of imports was a danger to national security. China, although not a significant exporter of steel to the U.S., had depressed global steel prices by dumping its excess metals production on the global market. Trump administration officials have also said that some Chinese steel was making its way into the U.S. market after being diverted through other countries, a process known as transshipment.