Trump's Tariff Pause 'Welcome Reprieve' For Global Economy, Canada PM Carney Says

By Paul Vieira

OTTAWA--Canadian Prime Minister Mark Carney said President Trump's 90-day pause on reciprocal tariffs marked a "welcome reprieve" for the global economy.

Carney had warned this week that the probability of a U.S. recession had escalated due to the President's tariff policy, and that Canada could not avert the fallout from a downturn.

In a statement posted on the social-media platform X, Carney said the 90-day pause, and Trump's pledge to negotiate new trading arrangements with dozens of countries, "will likely result in a fundamental restructuring of the global trading system." As a result, he added, Canada needs to deepen ties with other trading partners "that share our values, including the free and open exchange of goods, services, and ideas."

Carney and Trump have agreed that, after Canada's April 28 election, officials in Washington and Ottawa would begin talks on a new pact covering economic and security ties between the two countries. The Carney-led Liberal Party holds a lead in nearly all public-opinion polls, as voters appear to be rallying around the former Canadian and U.K. central banker as the best person to lead the government in this tumultuous period in the global economy.

The U.S. has imposed hefty tariffs on Canadian imports that are not compliant with the U.S.-Mexico-Canada trade pact, as well as Canadian-made vehicles, steel and aluminum.

Write to Paul Vieira at paul.vieira@wsj.com