Canada's Carney retreats from Davos remarks in Trump call, US says

2026-01-27 - 07:28

Canadian Prime Minister Mark Carney has reportedly backed away from comments he made at the Davos summit earlier this month during a direct phone conversation with US President Donald Trump, according to a senior American official. US Treasury Secretary Scott Bessent revealed details of the leaders' discussion on Monday, highlighting a perceived change in Carney's stance. The call took place against the backdrop of President Trump's recent threat to impose tariffs of 100% on all Canadian goods entering the United States, a move that would severely impact the Canadian economy. A shift in tone following tariff threats Speaking in a television interview, Bessent confirmed he was present for the call in the Oval Office. "The president spoke to Prime Minister Carney, who was very aggressively walking back some of the unfortunate remarks he made at Davos," Bessent stated. He emphasized the deep economic links between the two North American nations and warned that the proposed punitive tariffs would be "a disaster for Canada." Advice to prioritize national interests The US Treasury Secretary further advised the Canadian leader to focus on domestic concerns. Bessent suggested Carney "should do what's best for the Canadian people, rather than trying to push his own globalist agenda." This framing aligns with the economic nationalist perspective often championed by the Trump administration, which contrasts with the multilateral approach typically associated with forums like the World Economic Forum in Switzerland. Canada denies pursuing China trade deal The diplomatic contact appears to have prompted immediate clarification from Ottawa. In a statement issued on Sunday, Prime Minister Carney asserted that Canada has "no intention" to pursue a free trade agreement with China. This denial came directly after President Trump's tariff warning, underscoring the sensitivity of trade relations and geopolitical alignments for Canada, which shares the world's longest border with the United States.