The global political and economic landscape witnessed a sharp moment of reckoning as Canada PM Mark Carney slams US policies under Trump, declaring that the so-called rules-based international order was partially a lie and is no longer sustainable. Speaking at the World Economic Forum Davos, Carney delivered one of his strongest critiques yet of American actions under President Donald Trump, signalling a decisive shift in how middle powers like Canada view global leadership and international cooperation.

Mark Carney Trump Criticism at Davos

In a provocative address that resonated across global capitals, Mark Carney Davos speech struck at the very foundations of post-war global governance. “Let me be direct. We are in the midst of a rupture, not a transition. The old order is not coming back,” Carney said, setting the tone for a speech that challenged decades of assumptions about global stability.

Carney asserted that the narrative surrounding the rules-based international order collapse had always been incomplete. According to him, powerful nations selectively followed rules when it suited them, while enforcing those same rules unevenly on weaker states. This candid admission marked a significant departure from traditional diplomatic language often used at international forums.

Rules-Based International Order Was a Lie

One of the most striking lines from Carney’s speech was his assertion that the rules-based order was partially false. He explained that while the framework appeared to promote fairness and predictability, it functioned largely because of American hegemony, which provided global public goods such as financial stability and open trade routes.

However, Carney argued that this arrangement depended on mutual trust and restraint, both of which have eroded. “That the strongest would exempt themselves when convenient. That trade rules were enforced asymmetrically,” he said. According to him, this fiction worked only as long as the dominant power upheld its side of the bargain, a condition he believes no longer exists.

Canada US Relations News in a New Era

The Canada US relations news landscape has shifted dramatically under Trump’s presidency. Carney’s remarks reflect growing unease among close allies who once relied on Washington as a predictable partner. Tariff disputes, policy unpredictability, and unilateral decisions have strained long-standing alliances.

By openly criticising US policies under Trump on such a global platform, Carney underscored Canada’s willingness to publicly diverge from its most important trading partner. This signals a broader trend among allies reassessing their strategic dependence on the United States.

Weaponisation of Trade and Economic Power

Carney warned that great powers have begun using economic integration as weapons, a phrase that drew significant attention at Davos. He explained how US tariffs weaponisation and similar measures by other powers have transformed trade from a cooperative tool into an instrument of coercion.

“Tariffs as leverage. Financial infrastructure as coercion. Supply chains as vulnerabilities to be exploited,” Carney said, listing examples of how global interdependence has been turned into a strategic liability. These remarks reflect a growing consensus that economic globalisation, once seen as a stabilising force, now carries significant risks.

Global Trade Order Crisis Deepens

The global trade order crisis has been building for years, but Carney suggested recent events have accelerated its breakdown. Crises in finance, health, energy, and geopolitics have exposed the fragility of deeply interconnected systems. From pandemic-related supply shocks to energy insecurity and financial sanctions, nations are increasingly aware of their vulnerabilities.

Carney’s comments suggest that reliance on global supply chains without safeguards is no longer viable. Countries are now forced to rethink trade strategies, prioritising resilience over efficiency.

World Economic Forum Davos as a Turning Point

The World Economic Forum Davos news often features lofty rhetoric about cooperation and shared prosperity. However, Carney’s speech stood out for its blunt realism. Rather than calling for a return to the old system, he acknowledged its demise and urged leaders to confront uncomfortable truths.

This tone reflects a broader shift at Davos, where discussions increasingly focus on fragmentation, geopolitical rivalry, and economic nationalism rather than global integration alone.

Canada’s Principled and Pragmatic Strategy

Amid this uncertain environment, Carney outlined what he described as a principled and pragmatic strategy for Canada. He emphasised the need to strengthen domestic capacity while diversifying trade relationships to reduce reliance on any single partner.

For Canada, this means investing in critical industries, securing supply chains, and expanding trade ties beyond traditional markets. Carney stressed that such an approach does not reject global engagement but seeks to balance openness with resilience.

Decline of Multilateral Institutions

Carney also highlighted the weakening of multilateral institutions such as the World Trade Organization and the United Nations. According to him, these bodies have struggled to enforce rules effectively, leaving countries increasingly on their own.

This erosion has contributed to the rules based international order collapse, forcing nations to adopt more independent and sometimes defensive strategies. Carney warned that without reform, these institutions risk becoming irrelevant in a rapidly changing world.

US Policies Under Trump and Global Impact

The Mark Carney Trump criticism directly linked recent global instability to US policy choices. Tariffs imposed under the Trump administration disrupted established trade flows, affected allies and rivals alike, and undermined confidence in global rules.

Carney’s remarks suggest that such policies have accelerated a shift towards a more fragmented global economy, where trust is scarce and power politics dominate decision-making.

Energy, Finance, and Health Crises Expose Risks

Carney pointed to recent crises across multiple sectors as evidence of systemic fragility. Financial shocks, pandemic disruptions, energy shortages, and geopolitical conflicts have all revealed how interconnected systems can amplify risks rather than mitigate them.

These experiences have prompted governments to reconsider assumptions about efficiency and cost minimisation. Resilience, redundancy, and national capability are now seen as essential components of economic strategy.

Implications for Middle Powers Like Canada

For middle powers, the collapse of the old order presents both challenges and opportunities. Carney argued that countries like Canada must navigate a world where traditional guarantees no longer apply.

By pursuing diversified partnerships and strengthening domestic foundations, Canada aims to protect its sovereignty while remaining engaged globally. This approach reflects a broader recalibration among nations that neither dominate global systems nor wish to retreat into isolation.

Global Geopolitics Latest News and Shifting Alliances

The global geopolitics latest news increasingly features shifting alliances and strategic realignments. As trust in established systems declines, countries are exploring new partnerships and regional frameworks.

Carney’s speech aligns with this trend, acknowledging that global cooperation will likely be more fragmented and issue-specific rather than universal and rules-driven.

Reaction from Global Leaders and Analysts

Carney’s remarks have sparked debate among policymakers and analysts. Some view his honesty as refreshing, while others worry that openly declaring the end of the rules-based order could accelerate its demise.

Nevertheless, his speech reflects sentiments increasingly expressed behind closed doors. By articulating them publicly, Carney may have legitimised a broader conversation about the future of global governance.

India’s Perspective on the Global Trade Shift

From an Indian perspective, Carney’s comments resonate strongly. India has long argued for reforms in global institutions and greater recognition of emerging economies. The acknowledgement that trade rules were enforced asymmetrically validates concerns voiced by developing nations.

India’s push for diversified supply chains, domestic manufacturing, and strategic autonomy aligns with the principled and pragmatic strategy Carney outlined for Canada.

The Future of the Rules-Based Order

While Carney declared that the old order is not coming back, he did not suggest abandoning cooperation altogether. Instead, he called for honesty about power dynamics and realistic frameworks that reflect today’s world.

This may involve smaller coalitions, regional agreements, and flexible arrangements rather than rigid universal rules.

A Wake-Up Call for Global Leadership

Carney’s speech serves as a wake-up call for global leaders accustomed to relying on established systems. It challenges them to rethink assumptions and adapt to a world defined by competition as much as cooperation.

By confronting uncomfortable realities, Carney believes nations can build more resilient and equitable systems, even in the absence of a single dominant guarantor.

Conclusion: A Defining Moment at Davos

The declaration that Canada PM Mark Carney slams US policies under Trump, says rules-based order was a lie captures a defining moment in global discourse. His remarks at Davos reflect a growing recognition that the post-Cold War model of globalisation has reached its limits.

As countries navigate this new era, Carney’s call for principled pragmatism offers a blueprint for balancing national interests with global engagement. Whether the world moves towards renewed cooperation or deeper fragmentation will depend on how leaders respond to the challenges he so starkly outlined.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.