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U.S. Treasury Secretary Scott Bessent delivered a stern warning to Canadian Prime Minister Mark Carney on Wednesday, suggesting that Carney’s recent criticism of American trade policies could jeopardize Canada’s position in the upcoming review of the U.S.-Mexico-Canada Agreement (USMCA).
During an interview with CNBC, Bessent criticized Carney’s public stance, stating, “I would not pick a fight going into USMCA to score some cheap political points — either you’re working for your own political career or you’re working for the Canadian people.”
The diplomatic tension follows Carney’s high-profile speech at the World Economic Forum in Davos last week, where the Canadian leader condemned economic coercion by powerful nations against smaller countries. This criticism has sparked an escalating exchange between Canadian and American officials, including President Donald Trump himself.
Trump dramatically raised the stakes on Saturday when he threatened to impose a 100% tariff on Canadian imports, citing concerns over a trade agreement Carney is pursuing with China. The threatened tariffs would significantly impact Canada’s economy, which depends heavily on trade with the United States, its largest trading partner.
Bessent’s comments included a pointed personal critique of Carney, who previously served as governor of both the Bank of Canada and the Bank of England before entering politics. “I’ve seen what happens when a technocrat tries to pivot and become a politician,” Bessent remarked. “It never really works out well.”
The Treasury Secretary also told Fox News that Carney was “very aggressively walking back some of the unfortunate remarks he made at Davos” during a direct conversation with Trump on Monday. However, Carney presented a different characterization of that exchange.
“To be absolutely clear, and I said this to the president, I meant what I said in Davos,” Carney told reporters the following day, indicating that he stands by his critique of economic coercion despite the pressure.
The dispute occurs at a critical moment, as the USMCA—signed during Trump’s first term in 2020—is approaching its formal review period. The agreement replaced the previous North American Free Trade Agreement (NAFTA) and provides Canada with important protections against the full impact of America’s protectionist trade policies.
Adding to Canadian concerns, Trump has recently expressed indifference toward the agreement, stating earlier this month, “I don’t really care about it.” This casual dismissal of a cornerstone trade pact has raised alarms in Ottawa, where officials recognize the vital importance of maintaining stable trading relationships with the United States.
The USMCA is particularly crucial for Canada, as approximately 75% of its exports go to the United States. Any disruption to this trade relationship could have profound effects on the Canadian economy, potentially affecting industries from automotive manufacturing to agriculture and energy.
Despite the tense exchange, Bessent ended his CNBC comments on a cautiously optimistic note, suggesting that “I think we will end up in a good place — may not be a straight line.”
Trade experts note that this diplomatic row comes amid a broader context of increasing economic nationalism and protectionism in global trade. The Biden administration had maintained the Trump-era tariffs on many products, and Trump’s return to office has further heightened concerns about potential trade disruptions.
For Canada, navigating these complex relationships between its two largest trading partners—the United States and China—presents a significant diplomatic challenge as Carney’s government attempts to balance economic opportunities with geopolitical realities.
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10 Comments
This public back-and-forth between Canadian and American officials is worrying. I’m curious to see how it will impact the upcoming USMCA negotiations. Hopefully they can find a way to resolve their differences without resorting to damaging trade actions like tariffs.
Carney’s criticism of economic coercion is valid, but picking a public fight with the US before crucial trade talks seems risky. The USMCA is important for both nations, so I hope cooler heads can prevail.
Trump’s threat of 100% tariffs is an extremely aggressive move. That would be hugely disruptive for Canada’s economy. Both sides need to dial down the confrontational posturing and negotiate in good faith.
Interesting diplomatic tensions between Canada and the US. I wonder if this public sparring will impact the upcoming USMCA trade talks. Both sides need to keep the bigger picture in mind and find common ground.
Agreed, the leaders should avoid escalating the rhetoric and focus on pragmatic negotiations. There’s too much at stake economically for both countries to let this devolve into a political fight.
The diplomatic tension between Canada and the US is concerning, but not entirely surprising given the high stakes involved in the USMCA talks. I hope both sides can find a way to balance their national interests with the need for productive trade relations.
The threat of a 100% tariff on Canadian imports is an extremely aggressive move by Trump. That would be a major blow to Canada’s economy. I hope Carney and Bessent can find a way to de-escalate the rhetoric and negotiate pragmatically on the USMCA.
This back-and-forth between Canadian and American officials is worrying. I’m curious to see how it impacts the USMCA talks. Hopefully they can find a way to resolve their differences without resorting to economically damaging measures like tariffs.
It’s disappointing to see the leaders engaging in such public sniping rather than constructive negotiations. The USMCA is crucial for both economies, so I hope they can put aside their political differences and reach an agreement that benefits workers and consumers on both sides of the border.
The diplomatic tensions are concerning, but this kind of brinkmanship is unfortunately common in international trade negotiations. I hope the leaders can set aside political differences and focus on the economic interests of their countries.