Canadian Prime Minister Mark Carney on Thursday directly rebuffed U.S. President Donald Trump’s remarks that “Canada lives because of the United States,” asserting that Canada thrives on its own values, identity and democratic strengths.

Carney’s comments came hours after Trump, speaking at the World Economic Forum in Davos, Switzerland, said Canada receives many “freebies” from the United States and should be more “grateful” for American support. Trump’s remarks specifically targeted Carney and his earlier speech in Davos, where the Canadian leader warned of a shifting global order and the decline of the post-war rules-based system.

“Canada doesn’t live because of the United States. Canada thrives because we are Canadian,” Carney said in Quebec City after returning home. He emphasized a “remarkable partnership” with the U.S. in economy, security and cultural exchange, but stressed Canada must determine its own future.

Carney’s Davos address, which didn’t name Trump but was widely seen as critiquing rising coercive tactics by powerful nations, urged middle powers to work together and build a new global consensus rooted in shared values and cooperation. His remarks garnered attention and praise from international audiences.

Trump’s speech in Davos also touched on issues including Greenland and U.S. defense strategies, but his attack on Carney stood out for its direct tone, prompting an unusual public dispute between leaders of long-standing allies. Trump later rescinded an invitation for Carney to join the U.S.-led “Board of Peace,” an international initiative launched during the forum.

California Governor Gavin Newsom, present at the forum, praised Carney’s convictions and warned of democratic erosion, saying Carney’s courage resonated with political figures across the United States. He highlighted Canada’s efforts to diversify trade partnerships, including recent agreements on electric vehicles.

The bilateral tensions coincide with an upcoming review of the Canada-U.S.-Mexico Agreement (USMCA) trade deal, adding further complexity to economic and diplomatic ties between the two neighbours.