Canada Prime Minister Mark Carney has backed down on his end of the trade war and agreed to negotiate ‘immediately’ on a new agreement in a victory for Donald Trump.
The president announced a 90-day pause on all new ‘reciprocal’ tariffs, in a major reversal which caused one of the biggest stock market rallies in history.
He did not spare China, however, instead slapping Beijing with yet another round of import taxes.
Carney, who has continued predecessor Justin Trudeau‘s antagonism since taking over as the leader of what Trump has referred to as the would be ’51st state,’ praised Trump for the move.
‘The pause on reciprocal tariffs announced by President Trump is a welcome reprieve for the global economy,’ he said in a post to social media.
The Liberal Party leader added that he and Trump ‘will commence negotiations on a new economic and security relationship immediately following the Federal election.’
On March 23, Carney dissolved parliament and called for a snap election to be held April 28, which he is currently favored to win.
He said that while Canada will negotiate with the US, Trump’s signal that he will negotiate with several other countries means his nation will have to react similarly.
Canada Prime Minister Mark Carney (pictured) has backed down on his end of the trade war and agreed to negotiate ‘immediately’ on a new agreement in a victory for Donald Trump
The president (pictured center) announced a 90-day pause on all new ‘reciprocal’ tariffs , in a major reversal which caused one of the biggest stock market rallies in history
‘In that context, Canada must also continue to deepen its relationships with trading partners that share our values, including the free and open exchange of goods, services, and ideas,’ he wrote.
DailyMail.com has reached out to the White House for comment.
In March, Carney made his first speech as the incoming prime minister, and he wasted no time in attacking Trump.
Trump twice slapped across-the-board tariffs on Canada before his most recent pause.
Carney said he would keep retaliatory tariffs on the US ‘until the Americans show us respect.’
‘He’s attacking Canadian families, workers, and businesses and we cannot let him succeed and we won’t,’ he told voters at the Liberal Party convention.
‘In trade as in hockey, Canada will win.’
Former Prime Minister Justin Trudeau has argued Trump is trying to hurt Canada’s economy to force it to become part of the United States.
In March, Carney made his first speech as the incoming prime minister, and he wasted no time in attacking Trump
It is currently a Commonwealth country, meaning it has an independent prime minister and Parliament but King Charles is its head of state.
Another theory is Trump is upset over failed Trump hotels in Toronto and Vancouver and is seeking revenge.
Others speculate its his antagonistic relationship with Trudeau that led to his desire to annex the country. Trump has repeatedly referred to the former PM as Governor Trudeau.
Trump also argues Canadians would benefit from lower taxes and secure borders as part of the U.S.
‘To be honest with you, Canada only works as a state. … It would be one of the great states anyway — this would be the most incredible country,’ Trump said in the Oval Office on March 13.
‘Visually, if you look at a map, they drew an artificial line right through it, between Canada and the U.S., just a straight artificial line. Somebody did it a long time ago, many, many decades ago, and it makes no sense,’ Trump continued, apparently referring to a 1908 treaty that settled the boundary between the U.S. and Canada.
‘It’s so perfect as a great and cherished state.’
Trump was forced to backtrack on his sweeping tariff plans because of a ‘fire sale’ in the bond market which could have triggered economic meltdown.
Former Prime Minister Justin Trudeau (pictured center) has argued Trump is trying to hurt Canada’s economy to force it to become part of the United States
Alongside causing turmoil in the stock market, Trump’s sweeping tariff plans sparked a major US government bonds sell-off, the likes of which had not been seen since the depths of the Covid-19 crisis.
Experts are saying that it was this, rather than simply the ‘art of the deal,’ which caused the White House to backtrack on its tariff proposals.
On Wednesday, the President announced a 90-day pause on all new ‘reciprocal’ tariffs, in a major reversal which caused one of the biggest stock market rallies in history.
He did not spare China, however, instead slapping Beijing with yet another round of import taxes.
The ‘fire sale’ in the bond market came to a head late on Tuesday and into Wednesday.
The 10-year Treasury yield climbed overnight above 4.51 percent, while the 30-year Treasury yield hit a high of 5.02 percent on Tuesday night, CNBC reported.
US government bonds have traditionally been seen as one of the world’s safest assets, and as a place where investors can put their money in times of volatility.
But the sudden fall was one of the clearest signs yet that investors may be beginning to lose confidence in their safe haven status – and an indication of just how much the world’s biggest economy was shaken by Trump’s tariff plans.
Treasury Secretary Scott Bessent insisted that the decision to delay tariffs was driven by ‘the president’s strategy’, rather than the shocking rise in bond yields.
‘He and I had a long talk on Sunday, and this was his strategy all along,’ he told reporters outside the White House on Wednesday.
But Trump himself said he was watching the bond market closely as he decided to implement the pause. ‘The bond market right now is beautiful,’ Trump told reporters.
‘I saw last night where people were getting a little queasy.’
