WASHINGTON — The Trump administration has turned up the heat on Canada ahead of high-stakes North American trade talks, with U.S. Treasury Secretary Scott Bessent publicly cautioning Prime Minister Mark Carney against what he called “virtue signalling” as negotiations over the future of CUSMA draw closer.
Speaking Wednesday in Washington at an event unveiling the Trump administration’s new “Trump Accounts” investment program for children, Bessent used a television interview to send a pointed message to Ottawa. Asked about tensions following Carney’s recent speech at the World Economic Forum in Davos, Bessent said Canada should tread carefully.
“I would encourage Prime Minister Carney to focus on what’s best for Canadians — not scoring political points,” Bessent said in an interview with CNBC. “You don’t pick a fight going into a USMCA negotiation.”
The comments underline growing strain in Canada–U.S. relations as the Canada–U.S.–Mexico Agreement (CUSMA) comes up for mandatory review later this year. The three countries must decide by July 1 whether to extend the pact, reopen negotiations, or allow it to lapse.
Trade pressure resurfaces
Bessent’s remarks come after months of escalating rhetoric from the Trump White House, which imposed tariffs on several Canadian exports in 2025 and has repeatedly floated the idea of rewriting — or even abandoning — the trade deal.
Canada remains the United States’ largest trading partner, but Bessent made clear that size matters at the negotiating table.
“When you’re negotiating with an economy that’s many times larger than yours, posture matters,” he said, adding that Carney’s rise to office on what he described as an “anti-Trump message” could complicate talks.
A personal swipe at Carney
Bessent also questioned Carney’s shift from central banking to elected politics, noting the prime minister previously served as governor of both the Bank of Canada and the Bank of England.
“In my investment career, I’ve seen technocrats try to become politicians,” Bessent said. “It doesn’t usually end well.”
The comments follow claims from Trump officials that Carney softened his Davos remarks during a private phone call with the president earlier this week — an assertion Carney has firmly rejected.
“I meant what I said,” Carney told reporters on Parliament Hill Tuesday. “I was clear then, and I was clear with the president.”
Davos fallout continues
At Davos, Carney warned that global powers were increasingly weaponizing trade, using tariffs and economic integration as leverage — remarks that drew swift backlash from U.S. officials.
Trump later withdrew Carney’s invitation to join a newly announced advisory group dubbed the “Board of Peace,” while Commerce Secretary Howard Lutnick dismissed the Davos speech as “political noise.”
On Saturday, Trump escalated further, threatening a sweeping 100-per-cent tariff on Canadian goods should Ottawa strike a trade deal with China.
Carney has downplayed the criticism, saying the reaction should be viewed through the lens of upcoming trade negotiations rather than personal animosity.
Talks moving ahead — without Canada, for now
While formal Canada–U.S. discussions have yet to begin, U.S. Trade Representative Jamieson Greer met Wednesday with Mexican officials to outline potential changes to the agreement, including tougher rules of origin, closer coordination on critical minerals, and tighter alignment on external trade policy.
For Canada, the message from Washington is becoming increasingly clear: tone, timing, and diplomacy may matter as much as policy substance in the months ahead.
