Tensions between the United States and Canada have escalated dramatically this week, culminating in President Donald Trump's abrupt withdrawal of an invitation for Canada to join his proposed "Board of Peace".

This self-styled billion-dollar initiative aims to resolve global conflicts, but the move underscores a deepening rift between the two longstanding allies.

The spat erupted following pointed exchanges at the World Economic Forum in Davos, Switzerland, where Canadian Prime Minister Mark Carney delivered a speech that drew international headlines.

Carney's address on Tuesday warned of a "rupture" in the US-led, rules-based global order. He received a standing ovation from the assembly of political and financial elites for his candid assessment. 

Although he did not name Trump directly, the remarks were widely interpreted as a critique of the US president's disruptive approach to international affairs. Carney urged middle powers like Canada, which have prospered under American hegemony, to adapt to a new era where mere compliance offers no protection from major power aggression.

Trump responded swiftly during his own speech at Davos the following day, taking direct aim at Carney. "I watched your prime minister yesterday. He wasn't so grateful," Trump remarked.

He then issued a provocative claim: "Canada lives because of the United States. Remember that, Mark, the next time you make your statements." This taunt set the stage for further acrimony, highlighting Trump's penchant for personalising diplomatic disputes.

On Thursday, Carney hit back in a national address from Quebec City, just ahead of a new legislative session. "Canada doesn't live because of the United States. Canada thrives because we are Canadian," he declared firmly.

While acknowledging the "remarkable partnership" between the nations, Carney positioned his country as a counterpoint to global democratic decline. He emphasised that Canada could demonstrate an alternative path, resisting the "arc of history" bending towards authoritarianism and exclusion.

Later that same day, Trump fired off a post on his Truth Social platform, formally withdrawing the Board of Peace invitation. "Dear Prime Minister Carney: Please let this Letter serve to represent that the Board of Peace is withdrawing its invitation to you regarding Canada's joining," he wrote.

A Canadian government source clarified to AFP that Ottawa had no intention of paying to participate, despite Carney's earlier indication of openness to joining. This exchange has amplified concerns over the fraying of bilateral ties.

The rhetoric reflects broader strains in US-Canada relations since Trump assumed office nine months ago. Canada remains heavily dependent on trade with its southern neighbour, which absorbs over three-quarters of its exports.

Key sectors such as automobiles, aluminium, and steel have suffered under Trump's global tariffs, though the pain has been somewhat cushioned by adherence to the existing North American free trade agreement. Negotiations to revise this deal are slated to begin early this year, with Trump insisting the US requires no Canadian goods—a stance that could devastate Canada's economy.

Trump's threats have extended beyond trade. He has repeatedly floated the idea of annexing Canada, even sharing a social media image this week depicting Canada, Greenland, and Venezuela under the American flag. Such provocations have fuelled unease in Ottawa.

In his Thursday speech, Carney admitted Canada harboured no "illusions" about the precarious global landscape, noting that "the world is more divided" and "former alliances are being redefined and, in some cases, broken".

To counter these challenges, Carney outlined plans to bolster Canada's defences. He pledged to ramp up spending to safeguard sovereignty and secure borders. Framing Canada as "a beacon, an example to a world that's at sea", the prime minister signalled a strategic pivot towards greater self-reliance. This comes amid Trump's pattern of upending traditional alliances, prompting middle powers worldwide to reassess their positions.

The Davos exchanges and subsequent fallout illustrate a profound shift in North American dynamics. Carney's rising international profile, bolstered by his economic expertise from his time as Bank of England governor, positions him as a vocal Trump critic.

Yet, with economic interdependence so entrenched, both leaders face pressures to avoid outright rupture. As negotiations loom and rhetoric intensifies, observers warn of potential long-term damage to one of the world's most integrated bilateral relationships.

Agencies