President Trump said in Davos on Wednesday that Canada should be "grateful" to the U.S. for the "freebies" it receives because of the two nations' relationship.
Why it matters: Trump's dig at Canada came a day after Prime Minister Mark Carney delivered his own warning at the World Economic Forum over the "rupture" of the world order.
Driving the news: "Canada lives because of the United States," Trump said Wednesday before taking a direct jab at Carney. "Remember that, Mark, the next time you make your statements."
- Trump said Carney "wasn't so grateful" in his address.
- Carney avoided naming Trump in his speech — a strategy a Canadian official previously told Axios was deliberate. However, the official indicated that Carney's remarks were aimed squarely at the president's recent actions.
Zoom out: As Trump pushes a vision of hemispheric dominance — coupled with threats of the U.S. making its northern neighbor the "51st state" — Ottawa has reportedly started preparing for how to repel a U.S. invasion.
- Just before 1am ET Tuesday, Trump added fuel to the simmering fire between the U.S. and Canada with a Truth Social post depicting an altered map with Canada covered in the American flag.
Catch up quick: Beyond Trump's flirtations with annexing the U.S. ally, the cross-border relationship has been strained by the president's tariff threats — and Canada's subsequent strategy to diversify its trading partners.
- Carney, the former central banker turned prime minister, has since moved to ease trade relations with China.
What he said: "Let me be direct: We are in the midst of a rupture, not a transition," Carney said from the World Economic Forum pulpit.
- He declared that the bargain of the rules-based order underpinned by "American hegemony" now "no longer works."
- Carney warned, "The multilateral institutions on which middle powers have relied — the WTO, the UN, the COP ... the very architecture of collective problem-solving, are under threat."
- He concluded his address with an invitation to "stop pretending, to name reality, to build our strength at home and to act together." He was met with a standing ovation.
Editor's note: This story has been updated with additional details throughout.
Go deeper:
- As Trump alienates allies, China capitalizes
- The great Davos divorce: America's allies draw red line with Trump
