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.
'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.
Diwida >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.'
Ex-Prime Minister Justin Trudeau contends that Trump aims to damage Canada's economy to compel it into making changes. join the United States .
Currently, it is a Commonwealth nation with an autonomous prime minister and parliament; however, King Charles serves as its head of state.
A different theory suggests that Trump is displeased about the unsuccessful Trump hotel ventures in Toronto and Vancouver, and he is looking for retaliation.
Some believe it’s his contentious relationship with Trudeau that fueled his wish to annex the country. Trump has consistently referred to the previous Prime Minister as Governor Trudeau.
Trump contends that Canadians would gain from reduced taxation as well. safe boundaries as an element of the United States' strategy
"To be frank, Canada functions effectively as a single state. ... It would undoubtedly be one of the greatest nations; this could turn out to be an extraordinary country," Trump stated at the Oval Office on March 13.
From a visual standpoint, if you examine a map, they created an arbitrary line cutting directly through it, separating Canada from the United States—a simple, man-made division," Trump went on, seemingly alluding to a 1908 agreement that established the border between the two countries. "This was decided by someone ages ago, numerous decades back, and it doesn’t really make much sense.
'It is perfectly wonderful as a beloved and esteemed 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.
Alongside triggering chaos in the stock exchange Trump’s extensive tariff proposals triggered a significant sell-off in U.S. government bonds, an event rivaling the scale observed during the peak of the COVID-19 crisis.
Experts are indicating that it was this, more about the 'strategy behind the negotiation' ,' 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.
Nevertheless, he did not exclude China from this measure; instead, he imposed additional rounds of import duties on Beijing.
The intense selling pressure in the bond market reached a peak late Tuesday and continued into Wednesday.
The 10-year Treasury yield rose past 4.51 percent during the night, whereas the 30-year Treasury yield reached a peak of 5.02 percent on Tuesday evening. CNBC reported.
U.S. government bonds have historically been regarded as among the globe’s most secure investments, serving as a refuge for capital during periods of market turbulence.
However, this abrupt decline served as one of the most evident indications that investors might be starting to doubt the safety they had placed in these assets. It also highlighted the significant impact that President Trump’s tariff proposals were having on the world's largest economy.
The Treasury Secretary, Scott Bessent, asserted that the choice to postpone the tariffs was guided by "the president's strategy" instead of the significant increase in bond yields.
"He and I discussed extensively on Sunday, and this has been his approach from the beginning," he informed journalists gathered outside the White House on Wednesday.
However, Trump stated that he was carefully monitoring the bond market as he opted for a temporary halt. "The bond market looks great at this moment," Trump remarked to journalists.
'Last night, I noticed some folks starting to feel nauseous.'
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