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In his Tuesday speech at the WEF summit in Davos, Switzerland — which was applauded internationally — Carney warned that the old world order is dead and urged middle powers to band together as larger ones try to pressure them through economic coercion.

Canada has been shielded from the worst impacts of U.S. President Donald Trump's tariffs by the Canada-U.S.-Mexico Agreement on trade, known as CUSMA.

Trump increased tariffs on Canada to 35 per cent last August but those duties don't apply to goods that comply with the trilateral trade pact. Canada is being hammered by separate sector-specific tariffs on industries like steel, aluminum, automobiles, lumber and cabinets.

Lutnick cautioned that Ottawa's recent deal with China could upend CUSMA negotiations, which have started ahead of a mandatory review this year. That deal will see China lower agricultural tariffs in exchange for Canada opening some market access for Chinese electric vehicles.

Lutnick said Canada is "playing with a set of rules that they haven't really thought through." The commerce secretary went on to praise how the United States is doing deals with China.

Carney's speech sent ripples throughout the international community and his comments were widely cited by European leaders warning about a fundamental rupture in long-standing trade and defence relationships.

California Gov. Gavin Newsom — who is laying the groundwork for a possible Democrat presidential run — told the forum that multiple leaders in the United States sent him transcripts of Carney's speech.

German Chancellor Friedrich Merz, echoing Carney's speech, said "we are not at the mercy of this new world order."

"We do have a choice," Merz said Thursday. "We can shape the future."

Despite Trump's repeated demands for ownership of Greenland — a sovereign territory of the Kingdom of Denmark — and his repeated tariff threats, Lutnick maintained that the United States still has a good relationship with Canada and Europe.

U.S. Trade Representative Jamieson Greer did not express concern about the statements by Carney and European leaders at the Davos forum. He told Fox News there is a "new world order" emerging and European officials are starting to recognize it.

"We are entering into a period where some of the economic rules of the past are no longer effective, where some of the security arrangements may need to be rearranged," he said. "So there is an acknowledgment of that."

This report by ºÃÉ«tvwas first published Jan. 22, 2026.