Carney Denies Softening Davos Remarks After Trump Call, Defends Stance

Speaking to reporters in Ottawa on Tuesday, Carney responded to Bessent's assertion on Fox News that he had softened earlier statements delivered at the World Economic Forum in Davos during a phone call with Trump.

Asked whether he had rescinded any of his comments, Carney replied, "No." "To be absolutely clear, and I said this to the president, I meant what I said in Davos," Carney said.

He added that the discussion covered broader issues, including shifts in US trade policy. He said Canada was the first country to recognise those changes and was responding accordingly, noting that Trump had "understood" Canada's position.

At Davos, Carney had urged middle powers to avoid accommodating the United States and instead work together to counter its growing political and economic influence.

"Middle powers must act together because if we're not at the table, we're on the menu," he said.

His remarks drew a standing ovation at the forum and received international attention, standing in contrast to Trump's address at the same gathering.

Following the speech, Trump withdrew Canada's invitation to participate in his proposed Gaza "Board of Peace".

Around the same time, Carney travelled to Switzerland after finalising a limited trade arrangement with China, allowing a small number of Chinese electric vehicles to enter Canada at reduced tariffs, despite Canada previously joining the US in imposing 100 per cent duties on such imports.

Trump initially welcomed the move, saying, "That's OK, that's what he should be doing," but later warned on social media that he would impose steep tariffs on Canadian exports "If Canada makes a deal with China."

Carney said Canada had no intention of pursuing a broader free trade agreement with China.

"I explained to him our arrangement with China," Carney said, referring to his conversation with Trump.

"I explained to him what we're doing: 12 new deals on four continents in six months -- he was impressed."

On Tuesday, Canada and India issued a joint statement on expanding trade in Canadian oil and natural gas. Carney is scheduled to visit India next month for talks with Prime Minister Narendra Modi.

Carney also suggested that Trump's latest tariff warning should be viewed as part of broader negotiations ahead of a review of the Canada-US-Mexico trade pact.

"The president is a strong negotiator and I think some of these comments and positioning should be viewed in the broader context of that," he said at a news conference.

- ANI