Canada PM Mark Carney denies retracting Davos remarks in call with Trump, US Treasury Secretary Bessent says he did
The controversy stems from Carney’s speech in Davos, where he urged nations to accept the end of a rules-based global order. US Treasury Secretary Scott Bessent commented that Carney “was very aggressively walking back” some of his remarks after the speech.
Canadian Prime Minister Mark Carney confirmed on Tuesday (January 27) that he spoke with Donald Trump on Monday, following remarks he made last week that reportedly drew irritation from the US President. Carney, however, denied claims that he had walked back his statements.
When reporters asked if he had walked back his remarks, Carney replied, “No.”
The controversy stems from Carney’s speech in Davos, where he urged nations to accept the end of a rules-based global order. US Treasury Secretary Scott Bessent commented that Carney “was very aggressively walking back” some of his remarks after the speech.
"I was in the Oval with the President today. He spoke to Prime Minister Carney, who was very aggressively walking back some of the unfortunate remarks he made at Davos," Bessent reportedly told Fox News.
Carney warns of new global order, ushes middle powers to resist coercion
Carney used a major address at the World Economic Forum in Davos on January 21 to argue that middle powers must band together to resist coercion from aggressive superpowers. “Stop invoking the ‘rules-based international order’ as though it still functions as advertised,” Carney said. “Call the system what it is: a period where the most powerful pursue their interests using economic integration as a weapon of coercion.”
Carney received a rare standing ovation for his speech, which observers saw as a veiled critique of US President Donald Trump’s approach to international relations. While he did not mention Trump by name, his references to “American hegemony” and pressure tactics such as tariffs and supply chain manipulation were widely interpreted as allusions to the US president.
"Middle powers must act together"
Carney called on countries like Canada to form alliances to defend against coercion and protect their sovereignty. “Middle powers must act together because if you are not at the table, you are on the menu,” he said. He cited Czech dissident Václav Havel, warning against the dangers of governments and leaders lying to themselves about the realities of global power.
He also highlighted Canada’s commitment to NATO and its northern and western defenses: “Our commitment to Article 5 — NATO’s joint defense clause — is unwavering.”
Canada, Greenland, and rising Arctic tensions
On Arctic geopolitics, Carney emphasized Canada’s support for Greenland’s right to self-determination amid rising tensions over US claims.
Trade and China relations
Carney addressed recent trade developments with China, including a deal to reduce tariffs on Canadian agricultural products while easing levies on Chinese-made electric vehicles. He stressed that the agreement was not a free trade deal: “We have no intention of pursuing free trade agreements with China or any other nonmarket economy.”
Carney emphasized that Canada is fully committed to the Canada-US-Mexico Agreement (CUSMA), which obligates members to provide advance notice before pursuing a free trade deal with a non-market economy like China.
His remarks came in response to Trump’s threats of tariffs on Canadian goods, with the US president posting on social media: “China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave Ice Hockey alone!”
Carney pushes back against Trump
Carney earlier also hit back at Trump’s assertion that “Canada lives because of the United States.” In a national address in Quebec City, Carney said: “Canada doesn’t live because of the United States. Canada thrives because we are Canadian,” while acknowledging the long-standing partnership between the two nations.
He further urged Canada to serve as a model in a world experiencing “democratic decline”: “Canada can’t solve all the world’s problems, but we can show that another way is possible, that the arc of history isn’t destined to be warped towards authoritarianism and exclusion.”
Carney concluded that the world is now more divided, with alliances being redefined or broken. Canada is adjusting its strategic posture accordingly, ramping up defense spending and safeguarding its sovereignty: “We must defend our sovereignty (and) secure our borders. We have a mandate to be a beacon, an example to a world that’s at sea.”