Carney denies walking back Davos speech in phone call with Trump

January 28, 2026

Canadian Prime Minister Mark Carney publicly contradicted US Treasury Secretary Scott Bessent's claim that Carney had retreated from his Davos speech criticizing unconstrained superpowers, reaffirming his original statements following a phone conversation with President Trump. The dispute emerged after Carney's speech indirectly challenged Trump's disruption of the postwar world order, prompting Trump to respond that Canada's existence depends on the United States. The tension occurs amid upcoming mandatory reviews of the USMCA trade agreement and Trump's threats of 100% tariffs on Canadian goods over concerns about Chinese products entering the US through Canada.

Who is affected

Canadian Prime Minister Mark Carney
US President Donald Trump
US Treasury Secretary Scott Bessent
Canadian citizens and businesses
American businesses and consumers
Chinese exporters (particularly canola oil and electric vehicle manufacturers)
Member nations of USMCA (Canada, US, and Mexico)

What action is being taken

Carney and Trump are engaging in phone conversations about multiple issues including Ukraine, Venezuela, Arctic security, and Canada's trade agreement with China
Canada is implementing a trade agreement with China that lowers tariffs on Canadian canola oil from 85% to 15% by March
Canada is taxing Chinese electric vehicles at a 6.1% rate (down from 100%)
Trump is threatening Canada with 100% tariffs on goods

Why it matters

This situation is significant because it represents a fundamental shift in the postwar international order and US-Canada relations, with potential major economic consequences for both nations. The upcoming USMCA review occurs amid heightened tensions and could reshape North American trade relationships. Canada's attempts to diversify trade partnerships with China while maintaining its crucial economic relationship with the US highlights the challenges middle powers face when navigating between competing superpowers. The dispute also demonstrates how quickly diplomatic tensions can escalate in the current geopolitical environment.

What's next

The USMCA review will begin in a few weeks
Canada's tariff reduction on Chinese canola oil will reach 15% by March

Read full article from source: BBC