Explainer: Carney warns middle powers they must unite as global economy shifts, what it means
- Suzanne Shah
- Feb 2
- 2 min read
In a headline-making speech at the World Economic Forum on Jan. 20, 2026, Prime Minister Mark Carney called on “middle powers,” countries with moderate global influence, to work together in response to shifts in the global economy and growing pressure from major economic rivals.
For business and international relations students at institutions such as St. Thomas University, the speech highlights the importance of multilateral cooperation and trade diversification in a multipolar economic era.
Carney’s address at the annual gathering of world leaders and business executives in Davos underscored a broader shift in Canada’s foreign economic policy, with an emphasis on diversifying trade partnerships beyond traditional allies such as the United States.
His remarks were met with a standing ovation and immediately became a focal point of international commentary.
According to Reuters, Carney said in Davos, “Middle powers must act together because if you are not at the table, you are on the menu.” He also stated that nations outside the largest global blocs need strategic cooperation to avoid being dominated by larger states.
In the speech, Carney urged countries to recognize that the “rules-based global order” of the post–World War II era is under strain. He added that relying solely on existing alliances may not protect smaller nations from coercion through trade, tariffs and economic influence.
Carney’s intervention comes amid rising geopolitical tensions, including public friction with U.S. President Donald Trump.
After Carney’s speech, Trump criticized Canada and suggested it owes its prosperity to the U.S., Reuters reported.
The warning to middle powers reflects a shift in Canadian policy priorities.
In early January, Carney’s government renegotiated trade terms with China, agreeing to reduce tariffs on electric vehicles and other products, a move that represented a deliberate pivot toward diversifying Canada’s trade beyond its longstanding reliance on the U.S.
Trump later warned he could impose a 100 % tariff on Canadian goods if Canada pursued the China deal, heightening tensions between Ottawa and Washington.
Carney’s comments also resonated with other leaders at Davos. Australian Prime Minister Anthony Albanese praised Carney’s message while announcing that Carney will visit Australia in March to discuss shared economic and strategic goals between the two countries, Reuters reported.
Analysts said Carney’s speech signals a more assertive Canadian foreign economic policy aimed at building alliances with like-minded nations to cushion against coercive tactics by larger powers.
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