The Trump administration is increasing its pressure on Canada once again, as U.S. Treasury Secretary Scott Bessent issued a new warning to Prime Minister Mark Carney regarding upcoming trade negotiations. Bessent made these remarks during an event in Washington, D.C., where U.S. President Donald Trump introduced “Trump Accounts,” an investment initiative for children.
In an interview with CNBC’s Sara Eisen, Bessent addressed the tension between Trump and Carney following the prime minister’s attention-grabbing speech at the World Economic Forum in Davos, Switzerland. Bessent advised Carney to prioritize the best interests of the Canadian people over personal motives, especially with the USMCA negotiations on the horizon.
Highlighting Carney’s past anti-American and anti-Trump stance, Bessent cautioned against engaging in conflicts for political gain ahead of the USMCA talks. The Trump administration, after imposing tariffs on various Canadian exports in 2025, is now contemplating significant revisions to the CUSMA agreement.
Despite widespread support for CUSMA among American industries, Trump suggested that the U.S. might not require the agreement at all. Bessent also criticized Carney’s transition from the financial sector to politics, warning against such shifts based on his investment experience.
Following a phone call with Trump on Monday, where Carney allegedly backtracked on his Davos statements, the prime minister denied retracting his remarks. Trump and his officials have consistently criticized Carney since his Davos speech, with Trump rescinding Carney’s invitation to join the “Board of Peace” and threatening a 100% tariff on Canadian goods if Canada engages in deals with China.
U.S. Commerce Secretary Howard Lutnick dismissed Carney’s speech as political noise, emphasizing the benefits of the U.S.-Canada trade relationship. As the CUSMA review deadline approaches, discussions on potential reforms are underway between the U.S., Canada, and Mexico, with the focus on enhancing trade policies and collaboration.
Trade Representative Jamieson Greer met with Mexican officials to initiate talks on CUSMA reform, while formal discussions with Canada are pending. Carney has acknowledged the backlash from the Trump administration, emphasizing the broader context of the upcoming CUSMA renegotiations. The three countries must decide by July 1 whether to extend, renegotiate, or let the agreement expire.