Several of America’s closest allies are warning of a potential rupture with Washington after talks at the World Economic Forum on Tuesday, spurred by President Donald Trump’s threat to impose tariffs on European countries that refuse to back a U.S. takeover of Greenland.
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| World Economic Forum highlights: Davos |
Corporate chiefs and government leaders, including Trump, are gathering this week in the Swiss Alpine town of Davos. The annual meeting of the elite promotes dialogue and economic progress, even as actions from Washington have upended the global order and billionaires have reaped trillions in new wealth as the poor lag behind.
The European Union’s top official called Trump’s planned tariffs tied to Greenland a “mistake” and questioned his reliability, while French President Emmanuel Macron said the EU could respond by using one of its strongest economic measures, often described as a trade “bazooka.”
Trump says he will address the issue on Wednesday in Davos, writing on social media that he had agreed to “a meeting of the various parties.”
More highlights:
- What is the World Economic Forum? The forum is a think tank and event organizer based in Geneva whose main event — the annual meeting — debuted in 1971 in Davos, a ski-resort town of about 10,000 people. Since then, the meeting has swelled into a catch-all conference on issues as diverse as economic disparity, climate change, technology, and global cooperation — as well as competition and conflict.
- Who’s going? Organizers says a record of nearly 400 top political leaders, including more than 60 heads of state and government, and nearly 850 chairs and chief executives of many of the world’s leading companies. Headlining the lineup is U.S. President Donald Trump, who’s set to deliver a speech on Wednesday, and several Cabinet ministers and top advisers.
- What’s different this year? The geopolitical context has become incredibly complex this year: Trump’s pronouncements and policies on subjects as diverse as Venezuela, Greenland and Iran — not to mention his aggressive tariff policies — have upended the world order and raised questions about America’s role in the world.
TimeLine
Canada’s leader says middle powers must unite against great-power threats
Canadian Prime Minister Mark Carney says middle-power countries need to stop pretending the rules-based order is still functioning and urged them to rally together against threats from great powers.
“There is a strong tendency for countries to go along to get along,” he said. “To accommodate. To avoid trouble. To hope that compliance will buy safety. It won’t.”
Speaking Tuesday in Davos, Carney emphasized the need for coalitions to survive and that negotiating bilaterally with a hegemon leads to weakness and subordination.
Carney reaffirmed Canada’s commitment to NATO and opposed tariffs over Greenland. He criticized what he called the fading rules-based order, saying powerful nations use economic integration as a weapon. He did not mention the United States by name.
Europe cannot be a ‘miserable slave’ to Trump, says Belgium’s prime minister
With Trump’s Greenland provocations, “so many red lines have been crossed” in Europe, Belgian Prime Minister Bart De Wever said.
“Being a happy vassal is one thing. Being a miserable slave is something else. If you back down now you’re going to lose your dignity,” he said during a panel discussion on redefining Europe’s place in the world.
De Wever said he and Belgium’s King Philippe will meet with Trump on Wednesday where they will plan to press for a return to the old military alliance between Brussels and Washington.
“We either stand together or we will stand divided, and if we are divided, there is the end of an era, of 80 years of Atlanticism, really drawing to a close,” he said.
The former mayor of Antwerp, quoting the Italian philosopher Antonio Gramsci, said that in a time of great transformation that it is up to U.S. president if the alliance holds. “It’s up to him (Trump) to decide if he wants to be a monster - yes or no.”
Qatar’s prime minister warns of rising tensions in the Middle East
Speaking on a panel Tuesday, Sheikh Mohammed bin Abdulrahman Al Thani said mounting uncertainty across the region underscores the need for diplomacy over escalation.
“The region is going through a lot of tensions, and we can’t exclude what’s happening in Iran, and I believe with all this turmoil we need to resort to wisdom,” he said, adding that there is a need to reshape the architecture of security.
He also said that his country advised the Trump administration to address the Iran’s nuclear issue through diplomacy.
The tiny, gas-rich Gulf Arab state of Qatar hosts the biggest U.S. military base in the Middle East, and has been designated a U.S. “major non-NATO ally.”
Spain’s prime minister cancels Davos trip after deadly train crash
Spain began three days of mourning Tuesday for the 41 victims of the high-speed train collision.
Prime Minister Pedro Sánchez said he will not travel to Davos, as authorities work to locate more victims in the wreckage and determine the cause. Sánchez visited the site of the accident in the country’s south on Monday.
Qatar has been invited to join Gaza’s Board of Peace
Qatar’s Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani says the gas-rich Gulf country has been invited to join President Donald Trump’s Board of Peace.
“We are happy to be a contributor to peace in the region,” he told a panel at Davos on Tuesday.
He said Trump’s proposal has provided a “path” for peace in the Middle East, but “we have a lot of work to be done.”
Bessent says ‘do not retaliate’ against US for its Greenland plans
When asked at Davos about the emergency summit E.U. leaders are planning in response to U.S. plans for Greenland, Bessent said: “I would say exactly what I said after Liberation Day last April, when the president imposed tariff levels on the whole world. I tell everyone sit back, take a deep breath. Do not retaliate. Do not retaliate. The president will be here tomorrow, and he will get his message across.”
Macron warns of ‘a world without rules’
He also appealed for nations to come together and focus on problems they share, even as “conflict has become normalized.”
The French president noted a shift “towards a world without rules, where international law is trampled underfoot and where the only law that seems to matter is that of the strongest.”
He also warned that major powers are turning their backs on international bodies that have long underpinned the global order.
Macron says it’s not time for ‘new imperialism or new colonialism’
“Let’s not accept a global order which will be decided by those who claim to have, I would say, the bigger voice or the bigger stick,” he said Tuesday at Davos.
The French president said governments should focus on the global challenges of “growth, peace, climate.”
Greenland’s prime minister insists on respect for territorial integrity
Greenland’s prime minister insisted Tuesday on respect for territorial integrity as the crisis over the Arctic island intensifies.
Jens-Frederik Nielsen said his government is “working and taking this situation very seriously,” in response to a question by The Associated Press.
Nielsen says his government has had good meetings with NATO and its allies, and that all Western countries should be united by “respect for national, territorial integrity (and) respect for international law.”
Danish Prime Minister Mette Frederiksen in Copenhagen, meanwhile, warned Tuesday that “the worst may still be ahead of us.”
“We are now being threatened by our closest ally,” she told Danish lawmakers.
The Danish government was invited to Davos, but a forum spokesperson said Monday no representatives planned to attend.
Lithuania’s president says split between US and EU is ‘really heartbreaking’
Lithuania’s president says it is “really heartbreaking” to see the split between the U.S. and the EU over Greenland.
The White House has not ruled out taking over Greenland by force, which President Gitanas Nausėda said would likely bring an end to NATO, presenting “the best news for Russia.”
The Baltic country stands on NATO’s eastern flank and has warned for decades of Russia’s military ambitions in Europe.
Macron says allies should focus on peace in Ukraine, not trade wars
Macron says Trump’s Greenland tariff threats could push the EU to use the anti-coercion mechanism “for the very first time” against the U.S. The mechanism could potentially restrict access to European markets for American companies.
“Can you imagine that?” he said. “This is crazy.”
He said that instead of trade disputes, allied countries should be focused on bringing peace to Ukraine.
Anthropic CEO warns against Nvidia chip sales to China
The CEO of leading Artificial Intelligence company Anthropic warned against the Trump administration’s recent move to greenlight sales of a powerful Nvidia chip to China, comparing it to selling nuclear weapon technology to North Korea.
Dario Amodei spoke Tuesday in a panel discussion on artificial general intelligence, or AGI, at Davos. AI companies, including Anthropic, are racing to develop AGI, which would outperform human intelligence but could also bring risks that could threaten humanity.
“Are we going to, you know, sell nuclear weapons to North Korea, and, you know, because that produces some profit for Boeing?” he said. “That analogy should just make clear how I see this trade-off."Kelvin Chan contributed from London.
Macron’s sunglasses make an appearance at Davos
No, Macron isn’t tearing a leaf out of Tom Cruise in “Top Gun” by wearing aviator sunglasses in Davos.
The French president has been battling an eye condition that he has said is “completely harmless” but has made his right eye look red and puffy. He first sported sunglasses last week when inspecting members of France’s armed forces and wore them again at Davos, where he mingled and met Canada’s prime minister.
Macron is scheduled to speak Tuesday at the forum.
Harvard economist says Trump likely timed tariff threat to Davos
Kenneth Rogoff says European governments are really worked up over Trump’s threat to impose new tariffs over support for Greenland.
“It’s no accident he did this just before coming here and got the Europeans all riled up. Suck all the oxygen out of the room so everyone would be talking about nothing else,” he said.
Russia’s foreign minister condemns Denmark’s control over Greenland
Russia’s foreign minister declared Tuesday that Denmark’s control over Greenland was rooted in the colonial past.
Speaking at a news conference in Moscow, Sergey Lavrov charged that “in principle, Greenland isn’t a natural part of Denmark,” describing it as a “colonial gain.”
He described Trump’s bid to take over Greenland as an existential challenge to NATO that would seriously test its integrity.
Lavrov also strongly denied any intentions by Russia and China to threaten Greenland, as Trump has suggested.
China warns against trade wars
.webp "From left, Switzerland’s Foreign Minister Federal councillor Ignazio Cassis, Chinese Vice Premier He Lifeng, and Switzerland’s Federal President Guy Parmelin before a bilateral meeting at the House of Switzerland, HoS, on the sideline of the 56th annual meeting of the World Economic Forum, in Davos, Switzerland, Tuesday, Jan. 20, 2026. (Laurent Gillieron/Keystone via AP)") |
| From left, Switzerland’s Foreign Minister Federal councillor Ignazio Cassis, Chinese Vice Premier He Lifeng, and Switzerland’s Federal President Guy Parmelin before a bilateral meeting at the House of Switzerland, HoS, on the sideline of the 56th annual meeting of the World Economic Forum, in Davos, Switzerland, Tuesday, Jan. 20, 2026. (Laurent Gillieron/Keystone via AP) |
Chinese Vice Premier He Lifeng warned that tariff wars pose serious risks to global economic growth.
“There is no winner in the tariff wars or trade wars, which not only increase the cost of global production and trade, but also lead to the fragmentation of the global economy,” He said at Davos.
He also said China “is a trade partner rather than an adversary” with other countries.
Greenland’s European backers consider extending military presence
Greenland’s European backers are considering extending their military presence in the High North to help guarantee security in the Arctic region, a key demand of the United States.
The announcement came from Swedish Defense Minister Pål Jonson in the wake of Trump’s latest threat of tariffs, which indicated the import taxes would be retaliation for last week’s deployment of symbolic numbers of troops from the European countries to Greenland.
The U.S. president also suggested he was using the tariffs as leverage to negotiate with Denmark.
European members of NATO are currently “doing what’s called a reconnaissance tour in order to identify what kind of needs there are when it comes to infrastructure and exercises and so forth,” Jonson said.
EU top official questions Trump trustworthiness over tariff threat
.webp "European Commission President Ursula von der Leyen delivers her speech at the European Parliament, Wednesday, Feb. 16, 2022 in Strasbourg. EU leaders Charles Michel and Ursula von der Leyen address the dire conditions in Ukraine and the diplomatic chances to avert a Russian invasion during the plenary debate at the European Parliament. (AP Photo/Jean-Francois Badias)") |
| European Commission President Ursula von der Leyen delivers her speech at the European Parliament, Wednesday, Feb. 16, 2022 in Strasbourg. EU leaders Charles Michel and Ursula von der Leyen address the dire conditions in Ukraine and the diplomatic chances to avert a Russian invasion during the plenary debate at the European Parliament. (AP Photo/Jean-Francois Badias) |
The European Union’s top official on Tuesday called into question Trump’s trustworthiness, saying he had agreed last year not to impose more tariffs on members of the bloc.
“The European Union and the United States have agreed to a trade deal last July. And in politics as in business, a deal is a deal. And when friends shake hands, it must mean something,” European Commission President Ursula von der Leyen said.
In a speech at the forum, Von der Leyen said Trump’s planned new tariffs over Greenland “are a mistake especially between long-standing allies.”
Kremlin confirms its envoy will meet with US representatives in Davos
Kremlin spokesman Dmitry Peskov on Tuesday confirmed presidential envoy Kirill Dmitriev “has plans to meet with some representatives of the American delegation” in Davos.
Peskov’s remarks followed media reports saying Dmitriev intends to meet with U.S. envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner as part of the U.S.-led effort to end the nearly four-year war in Ukraine.
Peskov refused to name specific people Dmitriev is planning to meet in Davos, saying only that it will happen “on the sidelines” of the forum “these days, today, tomorrow.”
Dmitriev earlier on Tuesday said on the social media platform X that he arrived in Davos.
Trump turns his ire to Chagos Islands
.webp "FILE - This image realeased by the U.S. Navy shows an aerial view of Diego Garcia. (U.S. Navy via AP, File)") |
| FILE - This image realeased by the U.S. Navy shows an aerial view of Diego Garcia. (U.S. Navy via AP, File) |
The British government on Tuesday defended its decision to hand sovereignty the Chagos Islands to Mauritius after Trump attacked the plan, which his administration had previously supported.
Trump said relinquishing the remote Indian Ocean archipelago, home to a strategically important U.S. naval and bomber base, was an act of stupidity that shows why he needs to take over Greenland.
Trump’s speech Wednesday at Davos is highly anticipated and likely to include mentions of Greenland. Discussion of the Chagos Islands may now rise up the agenda at the Swiss Alps forum.
Courtesy: AP
