Carney gathers with cabinet for 2nd day to talk sovereignty, trade after taking aim at Trump

undercoat government minister german mark Carney and his storage locker ar gathering for a second day in Quebec City as questions mount about whether a war of words with the U.S. Will lead to a further fracturing of the bilateral relationship.

Carney used the opening of the two-day cabinet planning meeting on Thursday as an opportunity to respond to U.S. President Donald Trump, who warned the prime minister this week that Canada "lives" thanks to the United States.

"Canada doesn't live because of the United States," the prime minister shot back in a nearly 30-minute address Thursday.

"Canada thrives because we are Canadian."

At Issue | Can Carney deliver on his Davos speech?

Carney argued that uniting behind Canada's values will be key to upholding its sovereignty. His comments come not just against the backdrop of a changed relationship with Trump, but potentially ahead of referendums on separatism in both Alberta and Quebec.

That theme will be continued as ministers meet again on Friday, where Canada's sovereignty, trade and security are the agenda.

According to the Prime Minister's Office, the cabinet will hear from:

The meetings follow Carney's widely acclaimed speech in Davos, Switzerland, on Tuesday in which he laid out a frank assessment of the world order, calling out powers who use "economic integration as weapons."

Carney's position drew reaction from both Trump and other senior U.S. Officials.

Responding to Carney's Davos speech, U.S. Commerce Secretary Howard Lutnick told Bloomberg on Thursday that Canada has "the second-best deal in the world and all I got to do is listen to this guy whine and complain."

In the interview, Lutnick suggested if Canada continues down a path toward closer economic ties with China, "then when [CUSMA] gets renegotiated this year, in the middle of summer, do you think the president of the United States is going to say, ‘You should keep having the second-best deal in the world?'"

Later Thursday, Trump wrote on his Truth Social website that he is withdrawing an invitation for Carney to join his "Board of Peace" initiative for Gaza.

Foreign Affairs Minister Anita Anand said on Friday that the federal government will work to make sure humanitarian aid flows to the region "without question."

"Listen, all through, our values have been clear. Hamas should have no role in the future governance of Palestine. Hamas must demilitarize and disarm. There must be a ceasefire and Israelis and Palestinians must be able to live in peace and security side by side," she said before entering the cabinet meeting space.

"Those are Canadian values, those are our values and we will continue to pursue them, regardless."

On Friday U.S. Treasury Secretary Scott Bessent weighed in on another domestic Canadian issue: the separatist movement in Alberta.

Appearing on the conservative outlet Real America's Voice, the senior official claimed the government won't let Alberta build a pipeline to the West Coast.

"I think we should let them come down into the U.S," he said.

Organizers of the Alberta independence movement are collecting signatures in order to trigger a referendum in that province.

"There are cleavages that are going to be exacerbated," said Artificial Intelligence Minister Evan Solomon, responding to Bessent's comments.

"The job is to continue to invest in Canadians, to give them the opportunities."

Kicking off the cabinet meeting, which is being held at the historic Citadelle in the Quebec capital, Carney called for Canada to be a "beacon" in the face of rising authoritarianism.

"There are billions of people who aspire to what we have built: a pluralistic society that works," he said in a speech.

Carney readying Canada for changes that 'will test our solidarity as a people': Herle

"Canada cannot solve all the world's problems, but we can show that another way is possible: that the arc of history isn't destined to be warped towards authoritarianism and exclusion, it can still bend towards progress and justice."

He also used his speech to offer his view of what makes Canada different from other countries, charting a course through history to when the British, French and First Nations battled on the nearby Plains of Abraham.

"Two-hundred and sixty-seven years ago, this ground was soaked with blood. Two empires had collided. One had prevailed. What would come next?” Carney asked.

"The answer that emerged — slowly, imperfectly, not without struggle, but unmistakably — co-operation. Partnership. A shared future."

Carney's telling of history attracted criticism in Quebec.

Parti Québécois Leader Paul St-Pierre Plamondon, who has promised a third referendum if he wins this fall's provincial election, accused the prime minister on social media Thursday of falsifying history in the face of a mounting independence movement.

Carney's biggest political rival criticized the Liberals' record on reducing Canada's reliance on the United States.

In a six-page statement released Thursday, Conservative Leader Pierre Poilievre acknowledged that "no one can control what President Trump does or says," but stressed many Canadians' jobs depend on trade with our southern neighbour.

"We owe it to those workers, our family, friends and fellow Canadians, to ensure those jobs don't go away," he said.

"But we must also remember that our trade and security partnership with the U.S. Is centuries-old and will outlast one president."

Poilievre also took aim at "Liberal words and good intentions."

"We have had enough words. Now, we need results," he said. 

Carney's cabinet is also expected to focus on the economy, affordability and security, and ministers and secretaries of state are expected to discuss progress on their mandates during  their retreat.

The cabinet is also having a discussion Friday on artificial intelligence with Joelle Pineau, an executive at the Canadian AI company Cohere.

The federal government is collaborating with Cohere to bring AI into the public service.

Solomon teased that launching an AI strategy will be a priority in the coming weeks, but didn't go into concrete details.

The House of Commons returns Monday for the first time since early December. 

---

---