Canadian Prime Minister Mark Carney has publicly reaffirmed the substance of his critical Davos speech addressing global power dynamics, despite claims from Trump administration officials that he had retracted his statements. The diplomatic friction emerged after U.S. Treasury Secretary Scott Bessent asserted that Carney had “aggressively walked back” his remarks during a phone conversation with President Donald Trump.
In a Tuesday press briefing in Ottawa, Carney provided his account of the Monday phone exchange, clarifying that it was Trump who initiated the call. The Prime Minister characterized their discussion as a “very good conversation” covering multiple bilateral issues including Ukraine, Venezuela, Arctic security matters, and Canada’s recent trade arrangement with China.
The controversy stems from Carney’s World Economic Forum address, where he indirectly criticized Trump’s approach to international relations, suggesting it had caused a “rupture” in the postwar global order. Trump responded during his own Davos appearance with a stark reminder of Canada’s economic dependence on the United States.
Carney explained that his speech articulated Canada’s recognition of shifting U.S. trade policy and the nation’s adaptive response. He maintained that the President understood Canada’s position despite the subsequent tension.
The dispute escalated when Bessent used a Fox News interview to criticize Canada’s trade agreement with China, questioning Carney’s judgment and emphasizing the disproportionate importance of north-south trade relations over east-west alternatives. The Treasury Secretary suggested Carney should prioritize Canadian interests over “globalist agendas.”
This exchange occurred against the backdrop of Trump’s threat to impose 100% tariffs on Canadian goods if China uses Canada to circumvent U.S. tariffs. The recently announced Canada-China agreement will reduce Canadian canola oil tariffs from 85% to 15% by March, while Canada will apply most-favored-nation rates of 6.1% to limited Chinese electric vehicle imports, down from 100%.
Carney denied pursuing a comprehensive free-trade deal with China, stating Canada has “never” considered such an arrangement. He characterized Trump’s tariff threats as negotiation tactics ahead of the upcoming USMCA review, noting that “the president is a strong negotiator” and such comments should be viewed within broader negotiation context.