Canada's Carney's "anti-bullying" speech "stirred up a hornet's nest," and the Trump team was "furious."

Canadian Prime Minister Carney’s tough speech at the Davos World Economic Forum ignited a diplomatic dispute between the US and Canada. According to a previous report by Xinhua News Agency, Canadian Prime Minister Mark Carney stated on January 20th at the annual World Economic Forum in Davos, Switzerland, that recently, some major powers have used tariffs as leverage and financial infrastructure as coercive tools. As previously mentioned in a Wallstreetcn article, the new prime minister called on middle powers to unite in resisting economic coercion from major powers, warning, “If we’re not at the negotiating table, we’ll be on the menu,” a stance widely interpreted as a direct response to pressure from the Trump administration. On January 23rd, according to media reports, US Commerce Secretary Lutnick accused Carney’s speech of being “arrogant,” while Treasury Secretary Bessent demanded that Carney should “say thank you” rather than deliver a “values-performance speech.” According to CCTV News, Trump directly named Carney in Davos, criticizing him for being “not grateful enough to America,” and declaring, “Canada survives because of the United States.” Trump also revoked Canada’s invitation to join the "Peace Committee" on social media. CCTV News reported that after returning to Canada, Carney quickly responded, emphasizing in a domestic speech that “Canada does not survive because of America; Canada thrives because we are Canadians.” Analysts believe this diplomatic war of words highlights the most serious rift in US-Canada relations in decades and signals that Canada is reassessing its strategy of dependence on the US. **Davos Speech Targets “Hegemonic Coercion”** Reports state that Carney’s speech in Davos was strong, bluntly stating that “the rules-based international order built after World War II is collapsing,” and the world has entered an era of zero-sum competition among major powers. While he did not name the United States directly, he mentioned that “hegemonic countries” are weaponizing tariffs, financial infrastructure, and supply chains, posing a threat to middle powers. Carney said: “For decades, countries like Canada have prospered in the so-called rules-based international order. We know this story is partly false—hegemonic powers exempt themselves when convenient, trade rules are enforced asymmetrically—but this deal no longer works.” He called on middle powers to abandon the illusion that compliance leads to security and instead take joint action. “Middle powers must act in concert, because if we’re not at the table, we’re on the menu,” Carney warned, “If we negotiate bilaterally only with hegemonic powers, we negotiate from a position of weakness. That’s not sovereignty—it's performing sovereignty while accepting subordination.” Referencing Trump’s claims of sovereignty over Greenland and related tariff threats, Carney took a tough stance: “On the issue of Arctic sovereignty, we stand firmly with Greenland and Denmark. Canada strongly opposes tariffs imposed because of the Greenland issue.” **Trump’s Team Strikes Back** According to reports, Trump named Carney in his Davos speech, stating that he was not sufficiently grateful to the US. “Canada survives because of America,” Trump said. “Remember that, Mark, next time you make a statement.” On Thursday, Trump announced on Truth Social he was revoking Canada’s invitation to join his “Peace Committee,” though Carney previously said he was considering, but had not accepted it. Commerce Secretary Lutnick’s criticism was sharper; he accused Carney’s speech of being “arrogant ideas,” likening it to “complaint and whining.” Lutnick also hinted that Canada’s trade agreement with China could become an obstacle to the USMCA renegotiations later this year. Treasury Secretary Bessent told reporters in Davos: “I think Prime Minister Carney should say ‘thank you’ to the US, not deliver these value-performance speeches.” Carney responded in a domestic speech after returning to Canada, saying Canadians must double down to rebuild their economy, and cited the nation’s founding history to emphasize “choosing partnership, not domination; choosing cooperation, not division.” “Canada does not survive because of America; Canada thrives because we are Canadians.” **Strategic Shift to “Values-Based Realism”** Reports indicate that analysts point out Carney has announced a fundamental strategic shift for Canada to pursue “values-based realism.” This means Canada will no longer passively wait but will actively build hard power and a diversified network of relations. On defense, Carney pledged to double defense spending by the end of the decade, invest in submarines, over-the-horizon radar, and join EU defense procurement programs. In trade, according to CCTV News, during Carney’s official visit to China from January 14th to 17th, the two sides signed the “China-Canada Economic and Trade Cooperation Roadmap,” forming a preliminary joint arrangement on bilateral trade issues. The agreement reduced tariffs on Chinese electric vehicles and Canadian agricultural products. This diplomatic row is occurring as the US and Canada prepare to renegotiate USMCA. The Trump administration plans to officially launch negotiations this summer, while about 80% of Canada’s exports to the US rely on USMCA’s duty-free provisions. Fen Hampson, Professor of International Affairs at Carleton University, Ottawa, stated that Carney’s trade easing measures and Davos speech show that the Canadian leader believes decades-old economic and security agreements with the US have come to an end. Hampson believes that Carney is “calculating that USMCA cannot be salvaged under acceptable conditions, so the best option is to diversify trade, seek investors, and lead a rules-based alliance of partners.” **Risk Warning and Disclaimer Clause** The market involves risks, and investment needs caution. This article does not constitute individual investment advice, nor does it take into account specific investment goals, financial situation, or needs of any individual user. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular situation. Investment is at your own risk accordingly.