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’.