Carney answers Trump: 'Canada doesn't live because of US'

Trump appeared to shoot back later Thursday on his Truth Social platform, withdrawing an invitation for Canada to join the "Board of Peace" -- his self-styled billion-dollar body for resolving global conflict.

A government source told AFP Monday that Canada will not pay to be on the board, although Carney had indicated he would accept an invitation to join. 

The rhetorical back-and-forth between the two leaders underscores growing tensions between the allied nations.

Carney's speech on Thursday followed his remarks at the forum of political and financial elites in Davos, Switzerland, where he won a standing ovation for his frank assessment of a "rupture" in the US-led, rules-based global order.

That speech on Tuesday, which made world headlines, was widely viewed as a reference to Trump's disruptive influence on international affairs, although he was not mentioned by name. 

Carney told Davos that middle powers like Canada who had prospered through the era of an "American hegemon" needed to realize that a new reality had set in, and that "compliance" would not shelter them from major power aggression.

Trump took umbrage, and taunted Carney during his own speech a day later. 

"I watched your prime minister yesterday. He wasn't so grateful," the US president said on Wednesday.

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

- Alliances 'redefined, broken' -

In Carney's speech on Thursday, aimed at a domestic audience, he said that Canada should serve as a model in an era of "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," the prime minister said.

While Carney has not been shy of criticizing Trump since he took office nine months ago, he heads a country that remains heavily reliant on trade with the United States, the destination for more than three quarters of Canadian exports.

Key Canadian sectors like auto, aluminum and steel have been hit hard by Trump's global sectoral tariffs but the impacts of the levies have been muted by the president's broad adherence to an existing North American free trade agreement.

Negotiations on revising that deal are set for the start of this year and Trump has repeatedly insisted the United States doesn't need access to any Canadian products -- which would have sweeping consequences for its northern neighbor.

Trump has also repeatedly threatened to annex Canada, and this week posted an image on social media of a map with Canada -- as well as Greenland and Venezuela - covered by the American flag.

On Thursday, Carney said Canada was not under any "illusions" about the precarious state of global relations.

"The world is more divided. Former alliances are being redefined and, in some cases, broken."

Citing his government's plans to ramp up defense spending, Carney said "we must defend our sovereignty (and) secure our borders."

Canada, he further said, has a mandate "to be a beacon, an example to a world that's at sea."

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