Canadian Prime Minister Mark Carney has conceded in the ongoing trade conflict

In a stunning development, Canadian Prime Minister Mark Carney has conceded in the ongoing trade conflict, agreeing to engage in negotiations for a new agreement "immediately," marking a significant victory for Donald Trump.



The U.S. President declared a 90-day suspension of all new reciprocal tariffs, a decisive action that sparked one of the most remarkable stock market rallies in history. However, Trump did not hold back from targeting China, imposing an additional round of import tariffs on Beijing. Carney, who has upheld the adversarial stance of his predecessor, Justin Trudeau, since taking office, commended Trump's decision. He expressed on social media, "The pause on reciprocal tariffs announced by President Trump is a welcome reprieve for the global economy." The leader of the Liberal Party also mentioned 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 an early election on April 28, an election he is currently favored to win. He noted that while Canada will engage in discussions with the U.S., Trump's intentions to negotiate with various countries mean Canada must also pursue similar strategies.

In March, during his inaugural address as Prime Minister, Carney wasted no time criticizing Trump. Before the current pause, Trump had instituted sweeping tariffs on Canada. Carney had previously stated that retaliatory tariffs would remain in place until the U.S. demonstrates respect towards Canada, remarking, "He's attacking Canadian families, workers, and businesses. We cannot let him succeed, and we won't," while addressing voters at a Liberal Party convention.
"In trade, as in hockey, Canada will prevail.

" Former PM Justin Trudeau has claimed that Trump aims to weaken Canada's economy to force its integration into the United States. Carney's inaugural speech, delivered in March, included pointed remarks aimed at Trump. The speculation surrounding the U.S. President's motives for targeting Canada ranges from failed hotel ventures in Toronto and Vancouver to frustration with Trudeau, whom Trump has mockingly referred to as "Governor Trudeau.

" Trump argues that Canadians would benefit from reduced taxes and enhanced security as part of the U.S. He previously asserted, "To be honest with you, Canada only works as a state... It would be one of the great states regardless — this would be the most incredible country." Trump voiced these sentiments in the Oval Office on March 13, criticizing the boundaries delineated between the U.S. and Canada as arbitrary. Trump was compelled to scale back his extensive tariff plans due to a "fire sale" in the bond market, which threatened to trigger a significant economic downturn.

Alongside creating turmoil in the stock market, Trump's expansive tariff proposals prompted a sell-off of U.S. government bonds, a phenomenon not seen since the peak of the Covid-19 crisis. Experts suggest it was this turmoil, rather than mere negotiation tactics, that prompted the White House to reassess its tariff strategies. On Wednesday, Trump announced a pause on all new reciprocal tariffs, catalyzing one of the largest stock market rallies in history while also maintaining his plans for China. The bond market turmoil peaked late on Tuesday and into Wednesday, with the 10-year Treasury yield surpassing 4.51 percent, and the 30-year Treasury yield reaching a high of 5.02 percent, as reported by CNBC. U.S. government bonds are traditionally regarded as some of the safest investment vehicles globally; however, this decline might indicate waning investor confidence in their stability amid Trump's tariff moves. Treasury Secretary Scott Bessent claimed the decision to delay tariffs was part of "the president's strategy," insisting that it was always Trump's plan.

Conversely, Trump acknowledged that he was closely monitoring the bond market while deciding to implement the pause, stating, "The bond market right now is beautiful," adding that he was aware investors were becoming uneasy.
Source@Bosman