Prime Minister Mark Carney delivered a stark warning at the World Economic Forum in Davos on Tuesday, declaring that the long-standing U.S.-led, rules-based international order has effectively come to an end and that middle powers like Canada must urgently adapt or risk being coerced by larger states.

In one of his most provocative speeches since taking office, Carney argued that “great powers” are now using economic integration not as a path to shared prosperity, but as a tool of pressure and control. Without naming U.S. President Donald Trump, he pointed to the erosion of what he called “American hegemony” and the growing use of trade, finance and supply chains as geopolitical weapons.

“The old, comfortable assumption that our geography and alliance memberships automatically conferred prosperity and security is no longer valid,” Carney said.

He warned that deeper integration with powerful economies can now lead to “subordination,” forcing countries like Canada to rethink their economic and strategic dependence—particularly on the United States.

Carney said the global system that once helped manage disputes and foster cooperation is fraying. Multilateral institutions such as the World Trade Organization, the United Nations and international climate forums have been weakened, diminishing what he described as the “architecture of collective problem-solving.”

“As that architecture erodes, countries must accept that they may have to go it alone more often than in the recent past,” he said.

In response, Carney called for a dual approach: principled in values, but pragmatic in execution. He urged Canada to invest more heavily at home while aggressively diversifying trade and supply chains to reduce exposure to external pressure.

“Many countries are drawing the same conclusions,” Carney said. “They must develop greater strategic autonomy—in energy, food, critical minerals, finance and supply chains.”

Framing self-reliance as a matter of national survival rather than isolationism, Carney concluded with a blunt assessment of the new global reality.

“A country that cannot feed itself, fuel itself or defend itself has few options,” he said. “When the rules no longer protect you, you must protect yourself.”

The speech positions Canada squarely among a growing group of middle powers reassessing their place in a world where economic interdependence, once seen as stabilizing, is increasingly viewed as a source of vulnerability.