The U.S. Treasury Secretary, Scott Bessent, has issued a fresh warning to Prime Minister Mark Carney of Canada regarding the upcoming trade negotiations. Bessent, speaking at an event in Washington, D.C., introduced “Trump Accounts,” an investment platform for children initiated by U.S. President Donald Trump.
During an interview with CNBC’s Sara Eisen, Bessent addressed the rift between Trump and Carney following the prime minister’s speech at the World Economic Forum in Davos, Switzerland. Bessent advised Carney to prioritize the interests of the Canadian people over personal agendas, especially with the USMCA negotiations on the horizon.
Bessent criticized Carney for his anti-American and anti-Trump stance, cautioning that such sentiments could hinder negotiations with a much larger economy and key trading partner. The Trump administration, after imposing tariffs on various Canadian exports to the U.S. in 2025, is now contemplating significant revisions to the CUSMA agreement.
Despite widespread support for CUSMA among American industries, Trump has suggested that the U.S. may not need the agreement at all. Bessent also took a dig at Carney’s transition from a technocrat to a politician, highlighting the challenges such shifts entail.
Carney, however, has refuted claims of retracting his statements made in Davos, affirming his stance during a call with Trump. The ongoing tensions between Carney and the U.S. officials have escalated, with Trump withdrawing Carney’s invitation to join the “Board of Peace” and threatening to impose a 100% tariff on Canadian goods if Canada strikes a deal with China.
The Trump administration’s criticism of Carney’s speech on world powers using economic measures as weapons has sparked further controversy. While formal discussions between Canada and the U.S. regarding CUSMA have yet to commence, U.S. Trade Representative Jamieson Greer has begun talks with Mexico to explore potential reforms to the agreement, focusing on rules of origin, critical minerals collaboration, and trade policy alignment.
