Canadian Prime Minister Mark Carney on Tuesday denied claims that he softened or withdrew comments he made at the World Economic Forum in Davos during a recent phone call with U.S. President Donald Trump.
Earlier, U.S. Treasury Secretary Scott Bessent said Mr. Carney had been “very aggressively walking back” his Davos remarks during the conversation. However, the Canadian Prime Minister firmly rejected that description.
Davos speech sparks diplomatic tension
Last week in Davos, Mr. Carney said the world was moving away from a rules-based global order, comments that reportedly angered President Trump. In response, Trump said Canada “only existed because of the United States,” escalating an already tense trade relationship between the two countries.
Soon after, Trump warned that Washington could impose a 100% tariff on Canadian imports if Canada moved forward with a major trade agreement with China.
Carney stands firm on his position
Speaking to reporters after the call, Mr. Carney made his stance clear.
“To be absolutely clear, and I said this to the President , I meant what I said in Davos,” he said.
When asked directly whether he had walked back those remarks during the discussion with Trump, Mr. Carney replied simply, “No.”
Trade diversification and U.S. tariffs
Meanwhile, Mr. Carney continues to push for diversifying Canada’s trade relationships, citing U.S. tariffs on key Canadian exports. Currently, nearly 70% of Canadian exports go to the United States, making Canada highly dependent on its southern neighbor.
Because of this, the Canadian government is actively seeking stronger trade ties with other global partners while also investing more in domestic industries.
USMCA review adds pressure
The U.S.-Mexico-Canada Agreement (USMCA) is scheduled for review later this year. According to Mr. Carney, this upcoming process may explain some of President Trump’s recent comments and hardline trade positions.
During their call, Mr. Carney said he told Trump that Canada was responding to U.S. tariffs by building partnerships abroad and strengthening its economy at home, while remaining open to improving relations through the USMCA framework.
“He understood that,” Mr. Carney said.
Looking ahead
Despite sharp words and trade threats, both leaders appear aware of the economic importance of their relationship. However, Mr. Carney’s comments suggest Canada is preparing for a future that is less dependent on the United States and more globally connected.