Toronto, Jan. 24 -- Canadian Prime Minister Mark Carney on Thursday said the country "doesn't live because of the US," rebuffing remarks by American president Donald Trump amid an escalating dispute between the two neighbours. In a national address ahead of a new legislative session, Carney acknowledged that Canada and the US share a strong partnership across sectors, but stressed that Canada's success is rooted in its own identity. "Canada and the United States have built a remarkable partnership - in the economy, in security, and in rich cultural exchange. But Canada doesn't live because of the United States. Canada thrives because we are Canadian," he said. The comments followed a sharp reaction from Trump to Carney's address earlier this week at the World Economic Forum in Davos. The US president suggested the Canadian leader showed insufficient "gratitude", arguing that Canada benefits heavily from the US and depends on it for its survival. "Canada lives because of the US. Remember that, Mark, the next time you make your statements," Trump had said. The back-and-forth between Carney and Trump underscores growing tensions between the two global allies. Key Canadian sectors have been hit by Trump's global tariffs, though their impact has been softened by the US administration's continued adherence to the existing North American free trade agreement. Talks to revise the pact are due to begin this year. Trump has repeatedly said the US does not need Canadian products, a stance that could have major consequences for Canada. Trump has also threatened to annex Canada and referred to it as the US's "51st state". Earlier in the week, he shared a social media image depicting Canada, along with Greenland and Venezuela, draped in the US flag. Carney's speech on Thursday followed his remarks at Davos, where he had said that middle powers like Canada needed to realise that the rules-based order was dead and that "compliance" would not shelter them from major power aggression. Trump took umbrage to the comments, and taunted Carney during his own speech a day later. In his address on Thursday, Carney said that Canada should serve as a model in an era of "democratic decline." "Canada can't 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," he said. Canada was not under any "illusions" about the precarious state of global relations. "The world is more divided. Former alliances are being redefined and, in some cases, broken." Citing his government's plans to ramp up defence spending, Carney said "we must defend our sovereignty (and) secure our borders." Canada, he further said, has a mandate "to be a beacon, an example to a world that's at sea."...