Thursday, January 29, 2026

Carney in the Post Davos World

 

Much has been made of Mark Carney's speech in Davos, Switzerland about the current situation the world sees itself after one year of Donald Trump's return to office. It is interesting to note that is has had a world-wide response and the speech was re-printed in Le Monde and the New York Times. Donald Trump has reacted negatively and disinvited Carney to his Board of Peace. This may be a blessing for Carney. And Trump is escalating. He says he will launch 100% tariffs on Canada for the recent trade deal with China which does not involve sending any goods to the U.S. but a lowering of tariffs to pre-2024.

In Canada, Pierre Poilievre credited Carney with with an excellent speech and then went on for pages after criticizing him and his government. His main argument is that Carney has done nothing and his party has done nothing. This could be posturing for the election leadership review that Poilievre faces in two weeks. Every opportunity to bring down the minority government he has passed on. We'll see if he is ready to take the government down in February.

We don't have as many silos of only right wing or left wing views as the U.S. has. The American-owned National Post just doesn't have the reach nor does right wing radio or podcasting media in Canada have near the influence it does south of the border. Our bookstores have smaller politics section than U.S. ones where every politician or media person has a book out, it seems. Even social media is light on politics in Canada even on X (Twitter), TikTok and YouTube. Most Canadians seem to get their news from a diverse number of sources and stubbornly hug the middle in most things.

Nevertheless, Conrad Black, who received a pardon from Trump, says that Canada and NATO countries have been have been letting the U.S. do all the work. He seems to forget Afghanistan when Canada honoured Article 5 and went to fight. The first four Canadians killed in Afghanistan were killed by "friendly fire" from American forces. A total of 158 Canadian Forces killed along with 6 civilians seem to have been forgotten. Not just by Trump but by Conrad Black. The Super Conservative forgetting all this is appalling as is the soft pedaling of the disgust many Canadians feel about the threats that Black largely ignore. He gaslights us by calling it derangement syndrome.

The election in 2025 very much felt like a vote for stability when Mark Carney was elected. Canadians seemed to have a visceral response to the chaos south of the border. Many are angry at the aggressive bullying from Donald Trump. It has changed travel and shopping patterns and continues to alter them. It seems like whatever conservative media there is clearly is not reading the room at the rage against the U.S. and Trump in Canada. Every time the Conservatives blame Carney, they are likely setting their own prospects back.

The Winnipeg Sun seems to recognize that Trump's criticism of Carney helps the Liberals get their majority. The editorial believes it might be a conspiracy. The truth is a lot of conservatives are not looking for a united Canada. Some want separation. Some want 51st state. Polls consistently say that the majority in every province are against that. Even when Conservatives have power provincially and federally, there has been a separatist minority so blaming Liberals for them doesn't wash.

Pierre Poilievre had said the Liberals under Carney are not doing anything which is not exactly true. The budget passed but other pieces of legislation have been held up in the minority parliament. Parliament seems stalled as so often happens in a minority. The Carney government has announced GST relief that Poilievre says he will support. Since it is a financial measure, a vote down would likely trigger an election which Conservatives don't seem prepared for.

Trump might be miffed with Carney and his ambassador and cabinet are uttering threats and encouraging separation of Alberta. The ambassador seems perplexed why we won't just surrender our industry to the U.S. or why we'd consider them a threat? Not entirely sure some in Trump's team will every get why were not on board with their plans. Ultimately, it could be Carney is waiting for the Supreme Court to weigh in on the tariffs. Based on the questions the Supreme Court had for Trump officials, it seems likely they are worried that it might be an overreach on Congress and their constitutional power. However, given how the administration looks to dump the Second Amendment when it is a anti-Trump rally and shoot a protestor, who knows?

Although Poilievre has been critical of it, Carney has been travelling lots. He will continue to do in 2026 with India and Australia in search of business and security deals. The Europeans just signed a massive trade deal with India this week and Canada may be close to doing so as well. In Australia, Canada is buying a billion dollar defense system to be used in the north to detect intrusions. It is hard to believe that Poilievre would sit at home in some chauvinistic way to appeal to his base rather than making business, security and business deals around the world. His fear of being called a globalist would do harm to Canada.

Poilievre using the same talking points of the last election may not serve him well. The Canadian public has pivoted and it has a lot to do with Trump. And Poilievre still doesn't know how to respond well to Trump because a lot of his base loves the man. As we swing to separation talks in different regions, the fear is that the U.S. will meddle. They already are. And Poilievre can't be seen to lead the conga line for that. 

The Trump people have so many fires to put out that they started and the mid-term elections are happening this year. Time is running out to run on a winning message. The Supreme Court is to weigh in at any time on tariffs any time up till mid-February. This could result in a reversal of Trump tariffs. As it stands now, China has ordered many shiploads of canola at a reduced tariff and should stay within American red line limits. Prime Minister Carney might just have to wait things out till then.

For now we have to put up with Treasury Secretary Bessant and Commerce Secretary Lutnick gaslighting us about how it is Canada that started this fight with drugs crossing the border and our unfair trading practices. A list of Trump officials will have nothing good to say no matter what concessions are made. And Trump himself is likely to take it as weakness to try for a takeover. It isn't just negotiating strategies. After Venezuela, everything has to be looked at as a shakedown.

The Conservatives in Canada have been saying they are not Trump MAGA while re-posting MAGA comments. Liberal support is up mostly at the cost of the NDP and Bloc in the post Davos speech polling. The Conservatives have called it virtue signaling and said if the Liberals are not adopting the the Poilievre plan, they are doing nothing. Given the tax and GST cuts, the Liberals are not exactly doing nothing. And the canola shipments are hard to argue with except if Conservatives are saying they wouldn't sign tariff reduction deals with China.

A number of media outlets have indicated that Carney has a long list of additional travels in 2026, Some Conservatives are critical saying he should be back in Canada in Parliament facing a blocking opposition. This ignores the amount of Team Canada trips that Stephen Harper did that Conservative are extolling now. India and Australia trips are coming up and there are hints that trade agreements are pending. We can't completely replace American trade. It is simply too big and North American is too integrated to not reach a deal. However, we can't act like we are the ones blocking a deal.

It is still likely an election happens this year unless there is another few floor crossers to the Liberals. Minority governments never last long. Until then, Carney will run a government trying to mitigate the chaos in the U.S.

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