Canadian Corporate Leaders Voice Concerns Over Carney's U.S. Strategy
The Business Council of Canada, representing the nation's most influential chief executives, has openly questioned Prime Minister Mark Carney's diplomatic approach toward the United States administration. This development comes amid escalating tensions following Carney's recent remarks at the World Economic Forum in Davos.
Diplomatic Fallout from Davos Remarks
Prime Minister Carney captured international attention with his speech at the World Economic Forum last week, where he declared that the old rules of the postwar era had been replaced by "a great power rivalry where the most powerful pursue their interests using economic integration as a weapon of coercion." The prime minister argued that middle powers like Canada have no choice but to work together and push back against this dynamic.
These comments provoked an immediate and sharp response from President Donald Trump, who accused Carney of ingratitude during his own Davos appearance. "Canada lives because of the United States. Remember that, Mark, the next time you make your statements," Trump declared. Other members of the U.S. administration subsequently joined in criticizing the Canadian leader.
Business Council's Critical Assessment
Goldy Hyder, chief executive of the Business Council of Canada, expressed particular concern about the diplomatic approach in an interview with Bloomberg News. "Carney is a really smart guy and he said in the United Kingdom during Brexit, it's really dangerous for the United Kingdom to separate itself from its No. 1 trading partner," Hyder noted. "And yet that's exactly kind of the narrative that came out in Davos, so I don't know how to square that circle."
According to Hyder's assessment, few countries were willing to follow Carney's lead after the speech, with some instead choosing to distance themselves from his position. "It's almost like everyone's like, 'Yeah, you say it, but I'm not going to say it and I'm not going to back you up when you say it.' That's not a good place for Canada to be," Hyder emphasized.
Focus on Trade Agreement Preservation
The Business Council represents leaders from many of Canada's largest corporations, including the chief executives of the six biggest banks, along with top executives from major railways, telecommunications firms, pipeline operators, retailers and manufacturers. The organization's primary concern centers on maintaining stable economic relations with Canada's most important trading partner.
Hyder argued that Canada's top priority should be ensuring the smooth review of the Canada-U.S.-Mexico Agreement (CUSMA) this year. The trade pact remains crucial for Canadian exporters, who currently enjoy relatively low effective tariff rates because most goods traded between the U.S. and Canada remain tariff-free under the agreement.
Canada's Economic Vulnerability
The Business Council's concerns reflect Canada's particular economic vulnerability to U.S. pressure due to geographic proximity and deep economic integration. Approximately 70 percent of Canada's goods exports are shipped to its southern neighbor, making the relationship fundamentally important to the nation's economic health.
Conversely, the United States also has significant incentives to maintain strong trading relations with Canada, which represents the single largest national buyer of U.S.-made products, including automobiles and trucks. Executives at U.S. automotive and manufacturing companies have generally expressed support for keeping the continental supply chain intact.
International Context and Comparisons
The diplomatic situation has drawn attention to how other nations navigate relationships with major powers. British Prime Minister Keir Starmer, speaking with Bloomberg News this week, outlined his government's approach of maintaining close ties with both the U.S. and Europe while developing productive relationships with China, rather than positioning itself between competing superpowers.
"We've got very close relations with the U.S. — of course, we want to — and we will maintain that business, alongside security and defence," Starmer stated, highlighting a more measured diplomatic approach that contrasts with Carney's more confrontational rhetoric.
The Business Council's intervention represents a significant moment in Canadian political-business relations, with corporate leaders openly questioning diplomatic strategy at a time when economic stability depends heavily on maintaining productive cross-border relations.
