KENORA, Ont. -- Prime Minister Justin Trudeau says he is pleased the United States has dropped a planned border adjustment tax which he says would have been a serious impediment to trade.

Trudeau says the government will sit down with U.S. officials and discuss the North American Free Trade Agreement in August to find ways to improve the deal for both countries.

Trudeau was at a community barbecue in Kenora, Ont., and raised the issue of trade before a few hundred people who turned out.

He said while it was not a day for political speeches, he wanted to highlight the need to navigate carefully the relationship with the U.S.

The prime minister said Canada must demonstrate that it stands up for its interests but recognizes that a good deal can be had for both sides.

Trudeau also took a short tour by boat of the area -- a prime cottage destination for people in northwestern Ontario and Manitoba.