Canadian Prime Minister Mark Carney has pushed back against President Donald Trump’s claim at the World Economic Forum that Canada lives because of the United States, firmly rejecting the assertion while still acknowledging the close relationship between the two countries.
Canada doesn’t live because of the United States. Canada thrives because we are Canadian, Carney said Thursday during a national address in Quebec City ahead of the opening of a new legislative session. He described the relationship between Canada and the United States as a remarkable partnership, but stressed that Canada’s success is rooted in its own identity, institutions and values.
Trump appeared to respond later on Thursday via his Truth Social platform, announcing that he was withdrawing an invitation for Canada to join the so called Board of Peace, a body he has promoted as a billion dollar initiative for resolving conflicts in the Middle East, particularly the Israel Hamas war.
A government source said Canada would not pay to be part of the board, although Carney had earlier indicated he would accept an invitation to join. States looking for a permanent seat need to pay $1 billion, according to reports.
The exchange highlights growing tensions between the two long standing allies. Carney’s remarks followed a widely watched speech at the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, January 20, 2026, where he received a standing ovation for warning of a rupture in the US (United States) led, rules based global order.
Although Carney did not mention Trump by name, the comments were widely interpreted as a criticism of the US president’s influence on global affairs. In Davos, Carney said middle powers such as Canada, which had prospered during the era of an American hegemon, must recognize that global dynamics have shifted and that compliance would no longer protect them from major power aggression.
Middle powers must act together because, if we’re not at the table, we’re on the menu, Carney warned in his Davos address.
Trump reacted sharply during his own appearance at the forum a day later on Wednesday, January 21, 2026. I watched your prime minister yesterday. He wasn’t so grateful, Trump said. Canada lives because of the United States. Remember that, Mark, the next time you make your statements.
Trump said Canada gets many freebies from the US and should be grateful. He said Carney’s Davos speech showed he wasn’t so grateful. The US president also mentioned his proposed Golden Dome missile defense system, saying it would be defending Canada.
Speaking later to a domestic audience on Thursday, Carney said Canada should act as a model at a time of what he described as global 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, he said.
We are masters in our home, this is our own country, it’s our future, the choice is up to us, Carney added during his speech at the Citadelle in Quebec City, a storied military base fortified in the 19th century to secure the city against a potential American attack.
Despite his criticism of Trump since the US president took office nine months ago, Carney leads a country heavily dependent on trade with the United States, which accounts for more than three quarters of Canadian exports. Key sectors such as automobiles, aluminum and steel have been affected by Trump’s global sectoral tariffs, though the impact has been partially softened by the continued application of an existing North American free trade agreement.
Negotiations on revising that deal are expected to begin this year. Trump has repeatedly insisted that the United States does not need access to Canadian products, a position that would have severe consequences for Canada’s economy.
Trump has also repeatedly threatened to annex Canada and recently posted an image on social media showing Canada along with Greenland and Venezuela covered by the American flag.
Carney said Canada was under no illusions about the fragile state of global relations. The world is more divided. Former alliances are being redefined and, in some cases, broken, he said.
Referring to plans to increase defense spending, Carney added that Canada must defend our sovereignty and secure our borders, saying the country has a mandate to be a beacon, an example to a world that’s at sea.
In his Tuesday Davos speech, Carney declared that the rules based international order is effectively dead and the world is in the midst of a rupture, not a transition. He warned that recent events have shown great powers now pursue their interests using economic integration as a weapon of coercion.
Carney’s World Economic Forum address followed his high profile visit to China the previous week, where he reached a wide ranging agreement with President Xi Jinping to reduce tariffs and rebuild ties. Under the agreement, Canada intends to lower tariffs on Chinese electric vehicles (EVs) from 100 per cent to 6.1 per cent, and China is expected to lower tariffs on Canadian canola oil and other goods.
Carney hailed the strategic partnership with Xi, touting the importance of their ties in the face of a new world order. When asked about human rights in China, Carney responded, We take the world as it is, not as we wish it to be.
California Governor Gavin Newsom, a potential Democratic presidential candidate in 2028, told the forum that multiple leaders in the United States sent him transcripts of Carney’s speech. I respect what Carney did because he had courage of convictions. He stood up and I think we need to stand up in America and call this out with clarity, Newsom said.
Relations between the two long standing allies have come under heavy strain in Trump’s second term, with the US president referring to the neighboring country as the US 51st state and targeting it with tariffs.
Carney is kicking off a two day planning forum with members of his federal cabinet ahead of Parliament’s return on Monday. The official agenda of the meetings said the cabinet will focus on the economy, affordability and security as Canada works to diversify trade and find new partnerships.
Mark Carney became Canada’s 24th Prime Minister in March 2025 after leading the Liberal Party to victory. He previously served as Governor of the Bank of Canada from 2008 to 2013 and Governor of the Bank of England from 2013 to 2020.
