On January 28, 2026, the Treasury Secretary of the United States, Scott Bessent, issued a warning that any attempt by Canada to economically separate from the United States would be “a disaster” for Canada. He refuted recent statements made by Canadian Prime Minister Mark Carney, calling them both unrealistic and contrary to history.
Bessent stated on Monday in the Fox News program “Hannity” that “Canada relies on the United States. North-South trade (referring to trade between Canada and the United States) far exceeds East-West trade.”
The United States is Canada’s largest trading partner to date. According to the latest data from the Canadian government, over 75% of Canadian export products are sold to the United States, while exports to the Asia-Pacific region account for only 10.5%.
Bessent also dismissed some of Carney’s statements made last week at the World Economic Forum in Davos.
“He (Carney) talked about medium-sized countries needing to follow their own path. I’m old enough to remember when French President François Mitterrand tried to go down this road. It failed in the 1980s, and it will fail now,” Bessent said.
The U.S. Treasury Secretary believes Carney should reduce the promotion of the “globalist agenda” and instead do what is most beneficial for the people of Canada.
Former President Donald Trump warned on Sunday, January 25, on his social media platform “Truth Social” that “Canada is systematically destroying itself. The agreement with China (the CCP) is a disaster for them and will likely become one of the worst agreements in history.”
The day before, Trump stated that if Prime Minister Carney thinks he can turn Canada into a “transshipment hub” for goods to the United States from China, he is mistaken. Trump announced that if Canada reaches an agreement with China, all Canadian goods entering the United States will immediately face a 100% tariff.
Carney responded by stating that Canada has no plans to enter into a free trade agreement with China. He also mentioned that Canada respects its commitments and obligations under the United States-Mexico-Canada Agreement (USMCA). The agreement stipulates that if any country among Canada, the United States, and Mexico wishes to enter into a free trade agreement with China or other non-market economy countries, they must notify the other two countries in advance.