Bessent Warns Carney Against Picking Trade Fight Before USMCA Talks

Treasury Secretary says Canadian PM's Davos comments could backfire ahead of North American trade deal review.

Jan. 28, 2026 at 8:15pm

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Treasury Secretary Scott Bessent warned Canadian Prime Minister Mark Carney that his recent public criticism of U.S. trade policy could damage negotiations over the U.S.-Mexico-Canada Agreement (USMCA) trade deal. Carney had condemned "economic coercion" by major powers in a speech at the World Economic Forum in Davos, Switzerland, leading to a war of words with Trump and Bessent. Bessent advised Carney not to "pick a fight" for "cheap political points" ahead of the USMCA review, saying it "never really works out well" when a technocrat tries to become a politician.

Why it matters

The USMCA trade deal is crucial for Canada, as it protects the country from the full impact of President Trump's tariffs. Carney's public criticism of U.S. trade policy could jeopardize the delicate negotiations around the agreement, which is up for review. This comes at a sensitive time, as Trump has expressed indifference towards the USMCA in recent months.

The details

Bessent warned Carney that his Davos speech condemning "economic coercion" by major powers could backfire as the USMCA trade deal is reviewed. Trump had threatened a 100% tariff on Canadian goods over a trade deal Carney is pursuing with China. Bessent advised Carney not to "pick a fight" for "cheap political points" ahead of the USMCA review, saying it "never really works out well" when a technocrat tries to become a politician. Carney later said he "meant what I said in Davos", contradicting Bessent's claim that he was "walking back" his remarks.

  • On January 29, 2026, Treasury Secretary Scott Bessent warned Canadian Prime Minister Mark Carney about his recent public comments against U.S. trade policy.
  • Last week, Carney gave a speech at the World Economic Forum in Davos, Switzerland condemning "economic coercion" by major powers.
  • On Saturday, President Trump threatened to impose a 100% tariff on goods imported from Canada over a trade deal Carney is pursuing with China.
  • On Monday, Trump and Carney spoke, after which Bessent told Fox News that Carney "was very aggressively walking back some of the unfortunate remarks he made at Davos."
  • On Tuesday, Carney told reporters: "To be absolutely clear, and I said this to the president, I meant what I said in Davos."

The players

Scott Bessent

The U.S. Treasury Secretary who warned Canadian Prime Minister Mark Carney about his public comments against U.S. trade policy ahead of the USMCA trade deal review.

Mark Carney

The Canadian Prime Minister who condemned "economic coercion" by major powers in a speech at the World Economic Forum in Davos, Switzerland, leading to a war of words with Trump and Bessent.

Donald Trump

The President of the United States who threatened to impose a 100% tariff on goods imported from Canada over a trade deal Carney is pursuing with China.

U.S.-Mexico-Canada Agreement (USMCA)

The trade deal that protects Canada from the heaviest impacts of President Trump's tariffs, which is up for review.

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What they’re saying

“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.”

— Scott Bessent, U.S. Treasury Secretary (CNBC)

“I've seen what happens when a technocrat tries to pivot and become a politician. It never really works out well.”

— Scott Bessent, U.S. Treasury Secretary (CNBC)

“To be absolutely clear, and I said this to the president, I meant what I said in Davos.”

— Mark Carney, Canadian Prime Minister (Reporters)

What’s next

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The takeaway

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