Prime Minister Mark Carney on Tuesday said he had not walked back any part of his speech at the World Economic Forum during a phone call with US President Donald Trump, rejecting claims by US Treasury Secretary Scott Bessent that he had softened his stance.
Bessent had alleged that the Canadian leader was retreating from remarks made in Davos, where Carney urged countries to come to terms with the collapse of the US-led rules-based global order. Carney firmly denied that assertion, saying he stood by what he said.
“To be absolutely clear, and I said this directly to the President, I meant what I said in Davos,” Carney told reporters.
Addressing Canada’s House of Commons, Carney reinforced his criticism of Washington, arguing that recent US actions have fundamentally altered the global trade landscape. He said the United States itself had changed dramatically, adding that there was little that could now be considered normal in Washington.
In his Davos speech, Carney had cited US tariff policies as evidence that long-established global trade norms were eroding. He said the previous international order would not return and described the so-called rules-based system as only partially genuine.
Since then, Carney has pushed for Canada to reduce its heavy reliance on the US market, which currently accounts for roughly 70 per cent of Canadian exports under the US-Mexico-Canada Agreement.
Trump responded sharply to Carney’s Davos remarks, claiming Canada existed only because of the United States. He also threatened to impose a 100 per cent tariff on Canadian imports if Ottawa pursued a trade deal with China. Carney later clarified that Canada has no plans to negotiate a free trade agreement with Beijing.
The United States also withdrew an invitation for Canada to participate in Trump’s proposed Board of Peace initiative, which is aimed at resolving international conflicts.
Despite the escalating rhetoric, Carney said his phone conversation with Trump on Monday was frank and constructive. He said he told the US president that Canada was responding to tariffs by strengthening domestic capacity and expanding partnerships abroad, while remaining open to deeper cooperation through the USMCA.
According to Carney, Trump understood Canada’s position. He also informed lawmakers that preparations for the formal review of the USMCA, scheduled for later this year, would begin in the coming weeks, though he did not provide further details.
Earlier this month, Trump had dismissed the trade agreement as unnecessary, saying the United States did not need the pact.
