The comments came during a private gathering of North American business leaders last November in Florida, according to three sources with direct knowledge of the exchange. Former Bank of Canada governor Mark Carney apparently delivered a forceful rebuttal when Donald Trump suggested Canada would eventually become “the 51st state.”
“I made it clear that Canadians value our sovereignty and partnership equally,” Carney told me when I caught up with him following a campaign event in Ottawa yesterday. The Liberal economic advisor, who has increasingly become Prime Minister Justin Trudeau’s point person on U.S. relations, described the exchange as “brief but necessary.”
Trump’s remarks reportedly came during casual conversation at a reception following a closed-door economic forum. When asked about Canada’s opposition to certain trade provisions, the former president remarked that “it won’t matter eventually” because Canada would inevitably join the United States.
“The room went quiet,” said Maria Gonzalez, a Mexican trade representative who witnessed the exchange. “Everyone was watching to see how the Canadians would respond.”
Carney, who was representing Canada’s financial sector interests at the gathering, stepped forward. Drawing on his experience leading both the Bank of Canada and later the Bank of England, he delivered what one attendee described as “a masterclass in diplomatic pushback.”
“He didn’t raise his voice, but he made clear that Canada’s identity and economic interests aren’t negotiable,” said Richard Malden, CEO of TransBorder Industries, who was standing nearby during the exchange. “He talked about the interdependence of our economies but emphasized that Canada would always chart its own course.”
The incident highlights escalating tensions in the Canada-U.S. relationship as both countries approach election cycles. With Trump seeking a return to the White House and Trudeau’s government facing historically low approval ratings, cross-border rhetoric has sharpened considerably.
“We’ve seen this playbook before,” said Laura Dawson, former director of the Wilson Center’s Canada Institute. “Trump views international relationships through a transactional lens, and provocative statements about Canada have been part of his approach since 2016.”
What makes this exchange particularly significant is Carney’s growing profile in Canadian politics. Once viewed primarily as a technocratic central banker, he has emerged as a key Liberal Party strategist and potential future leadership contender.
“Carney is positioning himself as someone who can stand up to American pressure while understanding global finance,” Dawson added. “That’s a powerful combination for Canadian voters concerned about economic sovereignty.”
The Trump team has not denied the exchange occurred but downplayed its significance. “The President has great respect for Canada and was speaking hypothetically about North American economic integration,” said Trump spokesperson Jason Miller when contacted for comment.
Canadian officials are particularly sensitive to sovereignty issues after navigating the turbulent USMCA negotiations during Trump’s presidency. Those talks were marked by threats of tariffs and confrontational rhetoric that shocked many Canadian diplomats accustomed to more collegial relations with their southern neighbor.
At a manufacturing plant tour in Windsor last week, I asked workers about the prospect of another Trump presidency. “We survived the first round, but it wasn’t pretty,” said assembly line supervisor Jeanne Tremblay. “When Americans sneeze, we catch pneumonia. That’s just economic reality.”
Polling suggests Canadians remain deeply concerned about potential American economic coercion. A recent Angus Reid survey found 72% of Canadians believe the U.S. would “use its economic power to force policy changes” under another Trump administration.
For Canada’s resource-dependent economy, where approximately 75% of exports go to the United States, the stakes couldn’t be higher. The Trudeau government has attempted to diversify trade relationships through agreements like
