Canadian prime minister makes surprising U-turn as Donald Trump announces 90-day tariff pause on other nations

Canada's prime minister has made a surprising U-turn in light of Donald Trump's announcement to pause tariffs on some countries.

Canada and the US have been embroiled in a tense trade row ever since President Trump slapped 25 percent tariffs on Canadian goods within days of returning to the White House in January.

The POTUS cited illegal immigration and drugs as his reasons for hitting the US' neighbors with the sanctions, though later backed down into a 30-day pause following retaliatory tariff threats.

Ontario Premier Doug Ford threatened to 'inflict pain' on Americans by hiking electricity costs - or by simply switching the power off entirely for 1.5 million people in New York, Michigan and Minnesota, while Canada announced inflicting taxes worth $20.7 billion USD.

Canada was not on Trump's tariffs list on April 2 (Chip Somodevilla/Getty Images)

Yet Trump still pressed ahead with the plan as of March 4, though limited the levy on Canadian energy to 10 percent, while insisting 'reciprocal' tariffs will be applied to 60 other countries around the world on April 2.

Speaking from the White House's Rose Garden on 'Liberation Day', Trump revealed dozens of countries would be subject to a baseline 10 percent tariff or more, which included 34 percent levies on China, 20 percent on goods from the EU and 46 percent tariffs on Vietnam, amongst others Trump dubbed the 'worst offenders.'

Yet Canada, as well as Mexico, were crucially left off that list as the White House stated separately that USMCA-compliant imports can continue to enter the country duty free, not including some Canadian products like vehicles and car parts and steel and aluminum which are also subject to the 25 percent levy.

Mark Carney's message is somewhat diluted compared to his initial statement (Gavin John/Bloomberg via Getty Images)

The Trump administration has also said Canadian imports could drop from 25 percent to 12 percent tariffs if the country complies with Trump's immigration and drug trafficking demands.

Now, Trump has implemented a 90-day pause on some of the higher rates set on some countries though the situation remains unchanged for Canada.

Newly installed Canadian PM, Mark Carney, initially sent a defiant message over the tariffs, insisting 'we will win' the trade war with the US.

He said: "In this trade war, like in hockey and soccer, we will win. We didn’t ask for this fight, but Canadians are always ready when someone drops the gloves."

Carney also previously stated: “I reject any attempts to weaken Canada, to wear us down, to break us so that America can own us, that will never happen. Our response to these latest tariffs is to fight, is to protect and to build."

However, the Liberal Party leader has appeared to water down his stance in light of Trump's pause, taking to Twitter to write the news is a 'welcome reprieve for the global economy.'

Trump's tariffs have sparked intense criticism across the world (Kevin Dietsch/Getty Images)

He then pledged to negotiate a 'new economic and security relationship' with the US.

"As President Trump and I have agreed, the U.S. president and the Canadian prime minister will commence negotiations on a new economic and security relationship immediately following the Federal election," he wrote, which is to take place on April 28.

Carney added that the US' bilateral negotiations with other countries will 'fundamentally' restructure the global trading system and that Canada 'must also continue to deepen its relationships with trading partners that share our values.'

He continued: "This election is importantly about who can best fight for Canadian families, workers, and businesses at the negotiating tables with the United States and other potential partner countries.

"The stakes have never been higher."