Canada’s new prime minister, Mark Carney, has stepped back in a big way. He now says Canada agrees to start trade talks with the U.S. right away. This happened after Donald Trump paused new tariffs for 90 days. It’s a big win for Trump and a big change for Canada. Just weeks ago, Carney was talking tough, saying he would fight back. Now, he’s praising Trump online. He called the pause a “welcome move” and good for the world economy. Carney said he and Trump will meet to talk right after Canada’s election on April 28. He’s expected to win, so those talks could come soon.
Trump’s 90-Day Pause Gives Markets a Big Boost
Trump’s decision to pause new tariffs helped the U.S. stock market a lot. After the news, stocks went way up. It was one of the biggest jumps the market has seen. At the same time, though, Trump added more import taxes on China. So while Canada got a break, China did not. Trump said he wants fair trade, but he also wants to protect American jobs. He said the pause was part of his plan. Still, experts believe there’s more to the story.
Experts Say Bond Market Trouble Forced Trump’s Hand
Many experts think Trump paused the tariffs because of major trouble in the bond market. This happened at the same time as the stock rally. U.S. bonds started losing value fast. The sell-off was big. It was the worst since the Covid-19 crash. The 10-year bond yield went above 4.5%. The 30-year yield went above 5%. These are high numbers. Bond markets are usually very stable. But this time, investors got scared. They stopped trusting bonds to be safe. That’s a sign the economy was shaking. Some believe this pressure made Trump hit pause.
Carney Changes Tune After Tough Talk on Trump
This new softer tone from Carney is surprising. Just weeks ago, he was angry at Trump. In his first big speech, he promised to keep fighting. He said Trump was hurting Canadian workers and families – Canada agrees to win, just like they do in hockey. He said Canada would not back down. But things changed fast. Now, Carney wants to talk. He still says Canada will work with other countries too, but he clearly sees the need to fix things with the U.S.
Old Grudges, Failed Hotels, and Big Statements
Some people think Trump has personal reasons for his tough talk on Canada. His hotels in Toronto and Vancouver failed. That may have made him angry. Others think he just doesn’t like former Prime Minister Justin Trudeau. Trump often called him “Governor Trudeau,” as if Canada was already part of the U.S. He once said Canadians would do better as Americans. Lower taxes. Safer borders. More jobs. Trump also questioned the U.S.-Canada border. He called it an “artificial line.” He said someone drew it a long time ago and it doesn’t make sense today.
Will Canada Become America’s 51st State?
Trump has joked about Canada becoming the next U.S. state. He said it would be a “great state … the land fits well with the U.S. on a map. He made it sound like it was meant to be. But Canada is still part of the British Commonwealth. It has its own leader. King Charles is just a symbol there. Still, Trump talks like Canada would be better off as part of America. Whether he means it or not, it sure gets people talking.
Trump Says Pause Was His Plan, But Doubts Remain
The White House says this pause was Trump’s plan all along. Treasury Secretary Scott Bessent said they talked about it Sunday. He told reporters it was part of Trump’s strategy. But Trump also said he was watching the bond market closely. He called it “beautiful,” but admitted people were getting nervous. That shows the market drop did matter. Canada agrees that it may have pushed him to slow down on tariffs—for now.
