Canadian Prime Minister Mark Carney has warned of global fissures beyond US threats to Greenland in a WEF speech that won him a standing ovation on Tuesday.

"We knew the story of the international rules-based order was partially false, that the strongest would exempt themselves when convenient, that trade rules were enforced asymmetrically," Carney said in a speech at Davos.

He pointed out that US power had meant that the rules-based order had been imperfect, with the enforcement of trade rules and international law applying on the basis of military and economic might.

"This fiction was useful, and American hegemony, in particular, helped provide public goods, open sea lanes, a stable financial system, collective security and support for frameworks for resolving disputes," Carney said. "We placed the sign in the window. We participated in the rituals, and we largely avoided calling out the gaps between rhetoric and reality.

"This bargain no longer works. Let me be direct. We are in the midst of a rupture, not a transition," Carney added.

Carney: Middle powers need to be at the table or will be 'on the menu'

Canada, a founding NATO member, has also been threatened by the US, with Trump previously referring to Prime Minister Carney as the country's "governor" while also repeatedly saying Washington would make its northern neighbor the 51st state of the US.

Many in the Davos audience, such as Finnish President Alexander Stubb, who also heads one of the world's so-called middle powers, praised Carney's approach in describing Canada's values and principles as well as how he views the road ahead.

"The question for middle powers, like Canada, is not whether to adapt to the new reality — we must," Carney said. "The question is whether we adapt by simply building higher walls — or whether we can do something more ambitious.

"In a world of great power rivalry, the countries in between have a choice: compete with each other for favor or to combine to create a third path with impact," he said. "[We] argue the middle powers must act together because if we're not at the table, we're on the menu."

Trump, who spoke at Davos on Wednesday afternoon, claimed "Canada lives because of the United States," while grumbling about Carney's lack of gratefulness.

Edited by: Sean Sinico