Canadian PM Mark Carney warns Trump reshaping global order with coercive economic tactics

DAVOS, SWITZERLAND: Canadian Prime Minister Mark Carney on Tuesday, January 20, delivered a warning at the World Economic Forum in Davos that the global system was being reshaped by economic coercion rather than cooperation. His remarks came as President Donald Trump traveled to Switzerland amid rising tensions with allies over tariffs and Greenland. 

Similarly, UK Prime Minister Keir Starmer told Britain’s Parliament that Trump’s tariff threats against allies were “completely wrong.” The comments from the two global leaders underscored growing unease among close US partners as Trump prepared to address the forum.

Mark Carney warns of economic coercion and calls for middle-power cooperation

Speaking at Davos, Carney said that the world was undergoing a fundamental break rather than a gradual shift.

“We are in the midst of a rupture, not a transition,” he said, arguing that powerful countries were increasingly using trade and finance as tools of pressure.

“Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited,” he stated.

Carney said countries such as Canada could no longer rely on assumptions of mutual benefit in global integration.

“You cannot live within the lie of mutual benefit through integration, when integration becomes the source of your subordination,” he said.

He urged so-called middle powers to work together rather than negotiate separately with dominant states. “When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what’s offered,” Carney said.

He framed the choice facing such countries as one between competition for favor and collective action. “This is not sovereignty. It’s the performance of sovereignty while accepting subordination,” Carney said, adding that cooperation could offer “a third path with impact.”

Carney called on other nations to align with Canada around shared priorities, including support for Ukraine, NATO, and Danish and Greenlandic sovereignty.

He also cautioned against relying on existing international norms without acknowledging changing realities. “Stop invoking rules-based international order as though it still functions as advertised,” he said. “Call it what it is, a system of intensifying great power rivalry.” 

During his speech at Davos, Trump reflected on his planned "Golden Dome" defense system and said that "by its very nature," the system will defend Canada, too.

"Canada gets a lot of freebies from us," Trump said. "By the way, they should be grateful also, but they're not. I watched your prime minister yesterday. He wasn't so grateful. They should be grateful to us, Canada."

Trump added, "Canada lives because of the United States. Remember that Mark the next time you make your statements."

UK Prime Minister Keir Starmer rejects tariff threats 

UK Prime Minister Keir Starmer on Wednesday criticized Trump’s use of tariffs to pressure allies, telling the House of Commons that such tactics were unacceptable.

“Threats of tariffs to pressurize allies are completely wrong,” Starmer said. “Britain will not yield on our principles and values about the future of Greenland under threats of tariffs.”

Starmer also accused Trump of shifting his rhetoric to apply pressure on London.

Referring to US criticism of a UK agreement to transfer sovereignty of the Chagos Islands to Mauritius, Starmer said, “President Trump deployed words on Chagos yesterday that were different from his previous words … when I met him in the White House.”

He added that Trump’s comments were intended to influence Britain’s stance on Greenland.