Moneycontrol PRO
Swing Trading 101
Swing Trading 101

What awaits Trump at Davos: A tense reception and the 8-lakh-sq-mile elephant in the room

As Donald Trump heads to Davos amid the Greenland row, tariff threats and alliance strain, European leaders are bracing for a speech that could redefine the future of the US-led global order.

January 21, 2026 / 15:01 IST
Greenland, tariffs, and Trump: Davos 2026 set for high-stakes U.S.-Europe face-off
Snapshot AI
  • Trump to attend Davos 2026, leading a record-large US delegation
  • Tensions rise over Trump's Greenland demands and new tariffs on European imports
  • Trump proposes a "Board of Peace" to rebuild Gaza, inviting Putin and India

After keeping nearly all of Europe on edge over his demand to seize Greenland and consequent tariff threats, US President Donald Trump is set to attend the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday.

This will mark the third time Trump will physically attend the event during his presidency, after appearances in 2018 and 2020, alongside an online address in 2025. However, it will be the most watched appearance at the summit since it comes at a time when European leaders are facing a mounting dilemma over handling the capricious US President, with some even openly calling out Trump's "bullying".

As he departed for the summit, Trump joked at a White House briefing marking his first year back in power, saying, “I’m going to a beautiful place in Switzerland where I’m sure I’m very happily awaited for.”

Trump also said ahead of his visit that he would have meetings about the Danish territory of Greenland in Davos and was optimistic that an agreement could eventually be made. Greenland is the world's largest island that is not a continent, covering more than 836,000 square miles.

Ahead of President Donald Trump’s visit, US Treasury Secretary Scott Bessent urged European countries angered by Washington’s stance on Greenland to hold back their reactions and wait for Trump’s arrival.

Speaking to reporters in Davos on Wednesday, Bessent said Europe should avoid reacting emotionally and hear the US president out before concluding. “Take a deep breath, do not have this reflexive anger that we’ve seen, and this bitterness,” he said. “Why don’t they sit down, wait for President Trump to get here, and listen to his argument? Because I think they’re going to be persuaded.”

Questioning the military response by some European nations, Bessent added, “For those countries to activate their troops, I’m not sure what signal that’s supposed to send. It seems pretty quixotic to me.”

This year’s visit also comes with far higher global stakes. Trump is leading what the White House has described as a record-large US delegation, accompanied by five Cabinet secretaries and other senior officials, underlining Washington’s intent to project strength on the world stage.

Trump demands Greenland, Denmark says F*** off

Tensions have already flared ahead of Trump's arrival. Asked how far he was willing to go to acquire Greenland, Trump told reporters at the White House, “You’ll find out.” The remark has intensified unease in Europe, where leaders view his comments as a challenge to the trans-Atlantic alliance.

During a debate in the European Parliament, Danish MEP Anders Vistisen openly rejected Trump’s position, saying, “Let me put this in words you might understand: Mr President, f*** off.” The remark drew widespread attention and reflected growing frustration among European lawmakers.

Trump’s renewed focus on Greenland, combined with warnings of fresh tariffs against European countries, has pushed relations to a new low. European leaders attending Davos are increasingly questioning the durability of the US-led alliance system, with the forum becoming an arena for urgent efforts to contain escalation.

Canadian Prime Minister Mark Carney has been among the most blunt voices. Speaking at Davos a day before Trump’s address, Carney said the world was facing “a rupture, not a transition,” describing “the breaking of the world order, the end of a pleasant fiction and the beginning of a brutal reality where the geopolitics of the great powers is not subject to any constraint.”

Carney’s comments come amid signs of shifting diplomatic alignments. He recently described a “new era” in Canada-China relations during a four-day visit to Beijing, the first by a Canadian prime minister since 2017, signalling recalibration at a time of strain with Washington.

NATO Secretary General Mark Rutte has sought to maintain dialogue with Trump, even as the administration’s latest national security strategy warned that Europe faces “civilizational erasure.” Trump has reiterated his position, telling allies that “Greenland is imperative for National and World Security. There can be no going back. On that, everyone agrees!”

French President Emmanuel Macron also took a sharp stance at Davos, warning that Europe would not be intimidated. Amid Trump’s threat to impose tariffs if Europe resists US demands over Greenland, Macron said “imperial ambitions are resurfacing” and called for “more sovereignty and more autonomy for the Europeans.”

Trump has announced plans to impose a 10% tariff from February 1 on imports from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the UK, with the rate rising to 25% from June 1 if no agreement is reached.

The move has triggered emergency consultations in Brussels, with Macron urging the use of the EU’s Anti-Coercion Instrument, dubbed the bloc’s “trade bazooka.” Reuters reported the EU is also weighing €93 billion in suspended retaliatory duties.

Trump's Board of Peace

Beyond trade and Greenland, Trump is expected to announce his proposed “Board of Peace”, a body he says could help rebuild Gaza. He has suggested it could replace the United Nations, placing a $1 billion price tag on permanent membership, and has invited Russian President Vladimir Putin and India to participate. Macron, though invited, has said he will not join.

Asked about France’s refusal, Trump warned of a 200% tariff on French wine.

According to Michael Froman, president of the Council on Foreign Relations, “It’s fair to say that Davos… is another piece of the system that Trump is going to fundamentally transform,” adding that discussions have shifted to whether this moment marks “the beginning of the end of the Western alliance.”

While global tensions are expected to dominate Trump’s visit, his aides say he will also address domestic concerns, including affordability and housing. Trump has acknowledged frustration over how his economic record is being perceived, saying, “Maybe I have bad public relations people. But we’re not getting it across.”

Trump’s “special address” to the forum remains the focal point of the summit, although his departure was briefly delayed due to an electrical issue on Air Force One. He is also scheduled to meet foreign leaders and attend a high-profile reception with finance and cryptocurrency executives.

But all eyes will be on Trump’s speech and his interactions with European leaders at the summit, especially at a time when the US president has cast uncertainty over NATO’s future.

first published: Jan 21, 2026 02:15 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347